Sensex regains 80,000-mark thanks to sustained rally for seventh consecutive session 

Broader markets continued their upward momentum with the Nifty Midcap 100 index climbing 1.18% to 55,041.10, while the Nifty Smallcap 100 advanced by 0.44%

Equity benchmarks extended their winning streak for the seventh straight session on Wednesday, with the IT sector leading the charge as easing global trade tensions boosted market sentiment. Amidst FPIs buying, the Sensex closed above 80,000-mark for the first time since December 18, 2024; the benchmark climbed 520.90 points or 0.65 per cent climbed to 80,116.49, while the Nifty 50 increased by 161.70 points or 0.67 per cent to 24,328.95.

Markets opened on a positive note largely inspired by Wall Street’s strong performance after the US President Donald Trump’s comments on Federal Reserve Chair Jerome Powell and trade negotiations with China.

Foreign portfolio investors bought shares worth ₹3,323.93 crore on Wednesday, according to provisional data from the exchanges. For the sixth straight day, they were buyers to the tune of about ₹22,000 crore, after pulling out heavily since last October.

IT stocks outperform

IT stocks were the standout performers on Wednesday, with the sector index surging over 4 per cent. HCL Technologies led the gainers, jumping 7.74 per cent, followed by Tech Mahindra (4.76 per cent), Wipro (3.87 per cent), and Infosys (3.75 per cent). Tata Motors also showed strong performance, rising 4.44 per cent.

“The IT index outperformed, rallying over 4.35 per cent, whereas intraday profit booking was seen in selective consumer and financial stocks,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Banking stocks saw profit-taking after their recent rally, with Kotak Mahindra Bank and HDFC Bank both declining 2.09 per cent. Other top losers included Grasim (-1.98 per cent), State Bank of India (-1.08 per cent), and Eicher Motors (-0.93 per cent).

The broader markets continued their upward momentum with the Nifty Midcap 100 index climbing 1.18 per cent to 55,041.10, while the Nifty Smallcap 100 advanced by 0.44 per cent. Market breadth remained positive with 2,028 stocks advancing versus 1,949 declining on the BSE.

Nandish Shah, Deputy Vice President at HDFC Securities, noted, “Extending its bullish momentum for the seventh straight session, the Nifty climbed another 161 points (0.67 per cent) to close at 24,328, marking a robust recovery of over 2,600 points from its April 7th low of 21,743.”

The Indian rupee weakened for the second consecutive day, depreciating by 23 paise against the US dollar to settle at 85.42, driven by a strengthening Dollar Index.

In the commodity market, gold prices witnessed a sharp decline, falling by ₹1,500 to settle at ₹95,800 on MCX. “This marks a steep sell-off of nearly ₹2,500 since April 3rd, signaling a possible short-term reversal from recent peak highs,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

Technically, the market maintains its bullish structure despite Wednesday’s volatility. “As long as the market is trading above 24,150/79500, the bullish sentiment is likely to continue. On the upside, it could move up to the range of 24,450-24,500/80300-80500,” Chouhan added.

However, analysts have flagged potential warning signs. Rupak De, Senior Technical Analyst at LKP Securities, cautioned, “Although the sentiment remains upbeat as the index continues to trade above the previous swing high, the formation of a Hanging Man pattern on the daily chart serves as a warning for those holding net long positions.”

Looking ahead, the market is expected to maintain its positive bias in the near term, with support for Nifty seen at 24,072. “We maintain our positive outlook on the Nifty and recommend continuing with a ‘buy on dips’ approach, citing strong support around the 23,700–23,800 zone,” advised Ajit Mishra, SVP, Research at Religare Broking Ltd.

The immediate resistance for Nifty is placed at 24,545, which represents the 61.8 per cent retracement of the entire fall from its all-time high of 26,277 to the April 7 low of 21,743. With the Q4 earnings season progressing, stock-specific action is expected to remain in focus in the coming sessions.

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Published on April 23, 2025