Benchmark stock market indices closed higher on Thursday, continuing their recent positive momentum, although early gains were trimmed as the session progressed. The rally was primarily led by auto, metal, and pharma sector stocks, reflecting improving investor sentiment amid positive global cues. The S&P BSE Sensex surged by 609.86 points, or 0.83%, to settle at 74,340.09, while the NSE Nifty50 jumped 207.40 points, or 0.93%, closing at 22,544.70. The market’s resilience was evident despite volatility in certain sectors, as strong buying interest emerged in heavyweight stocks.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the bullish momentum to several global and domestic factors. He pointed out that former US President Donald Trump’s softened tariff stance on automakers from Canada and Mexico played a significant role in easing investor concerns. Additionally, the weakening US dollar provided further support to emerging market equities, including India. Nair also highlighted that crude oil prices experienced a pullback due to a slowdown in demand, which, coupled with fresh economic stimulus measures from China, ignited optimism in the energy and metals sectors. Furthermore, gains in banking and consumption stocks were driven by improved liquidity conditions, reinforcing market confidence.
Sectoral performance remained largely positive, with notable gains in auto, metals, and energy stocks. Among the top gainers, Asian Paints led the rally with an impressive 4.75% surge, driven by strong demand expectations and improving margins. Coal India followed with a solid 3.77% gain, reflecting optimism in the power and industrial sectors. Bharat Petroleum Corporation Limited (BPCL) also saw a robust increase of 3.56%, while Hindalco Industries jumped 3.51%, benefiting from stronger metal prices and global commodity trends. Energy conglomerate Reliance Industries gained 3.05%, contributing significantly to the overall market strength.
On the flip side, some stocks faced selling pressure despite the broader market's bullish trend. Tech Mahindra (TECHM) emerged as the biggest laggard, declining 2.35%, amid concerns over IT sector growth and margin pressures. Trent, the retail arm of the Tata Group, saw a dip of 1.12%, while Bharat Electronics Limited (BEL) declined 0.88%. Britannia Industries and Kotak Mahindra Bank also experienced minor losses of 0.68% and 0.67%, respectively, as investors booked profits in select defensive and banking stocks.
From a technical perspective, analysts are closely monitoring key levels for the Nifty50 index. Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, identified critical resistance in the range of 22,668 to 22,720, which marks the next major hurdle. He also highlighted that the previous breakdown point at 22,800 will serve as a significant resistance level. If the index manages to break above these levels, it could trigger a fresh upward rally.
On the downside, Yedve pointed out that 22,240 will act as an immediate support level. He advised traders to adopt a cautious approach, waiting for a decisive breakout above 22,800 before making aggressive bullish bets. Until then, he suggested a strategy of buying near support levels and taking profits around resistance zones to capitalize on market fluctuations.
Looking ahead, market participants will continue to track global economic developments, including crude oil price movements, US economic policies, and Federal Reserve signals on interest rates. Domestically, key triggers such as corporate earnings, macroeconomic indicators, and policy decisions will play a crucial role in determining the market’s direction. With strong sectoral momentum and improving investor confidence, the near-term outlook for Indian equities remains positive, but volatility may persist as traders navigate key resistance and support levels.
