The benchmark equity indices ended Wednesday’s trading session in the positive territory. The NSE Nifty 50 gained 82.55 points or 0.40% to settle at 20,937.65, while the BSE Sensex jumped 357.59 points or 0.52% to 69,653.75. Bank Nifty index dropped 177.70 points or 0.38% to settle at 46,834.55.
The broader indices ended in positive territory, with gains led by Largecap and Midcap stocks. Media and IT stocks outperformed among the other sectoral indices while Healthcare, and Realty stocks shed.
LTI Mindtree, ITC, Larsen & Tourbo, and TCS were the top gainers on the NSE Nifty 50, while the laggards include Adani Enterprises, Eicher Motors, Cipla, NTPC, and Axis Bank.
The Indian Volatility Index (India VIX) closed up by 2.09 %.
“Post-state elections, market optimism thrives, confirming policy continuity and meeting investor expectations. A robust FII reversal is fuelled by receding inflation and dropping yields in both US and Indian markets. The allure of Indian market gains post-China credit rating downgrade and decline in oil prices was followed by ease in geopolitical tensions,” said Vinod Nair, Head of Research at Geojit Financial Services
Nair also said that, strong rebound in IT, driven by reduced US recession risks and in anticipation of robust summer demand, fuels the momentum in the power sector. Despite a promising outlook, short-term profit booking may occur due to domestic premium valuation concerns. Further, lingering El Nino risks, a drop in reservoir levels, and reduced sowing may hold RBI to profoundly upgrade H2FY24 growth and reduce future inflation estimates
