Sensex and Nifty rally as Nifty Media and IT lead the gainers on October 5, 2023

The Indian markets displayed notable resilience today, as the Sensex soared by 405 points (0.62%) to close above the 65,600 mark, and the Nifty posted a gain of 109 points (0.56%) to finish above 19,500

During Thursday’s trading session, the domestic equity benchmarks exhibited a remarkable recovery, coinciding with the weekly expiry of F&O contracts. Robust buying activity was observed in heavyweight sectors, and positive global factors, including a decline in oil prices and lower US bond yields, boosted investor confidence on Dalal Street.

Specifically, the BSE Sensex surged by 405.53 points (0.62%) to settle at 65,631.57, while the NSE Nifty50 recorded a gain of 109.65 points (0.56%) to close at 19,545.75. The broader market showed mixed performance, with the Nifty Midcap index slightly down and the Nifty Smallcap index gaining 0.63%. Notably, India VIX, indicating market volatility, dropped by approximately 6% to reach 10.96.

The recovery in global markets, coupled with a significant decline in international crude oil prices and stability in US bond yields, prompted investors to engage in relief buying of domestic shares following two consecutive sessions of losses. The rally was primarily driven by purchases in IT, banking, auto, and capital goods stocks, although selective profit-taking limited overall gains.

Regarding sectors, Nifty Media, Nifty IT, Nifty Auto, and Nifty Bank were among the top gainers, while Nifty PSU Bank, Nifty Pharma, Nifty Metal, and Nifty Energy faced losses.

Among the Nifty 50 stocks, L&T, Bajaj Auto, Titan, and TCS recorded the most significant gains, whereas Power Grid, Hindalco, NTPC, and Tata Consumer Products were among the top losers.

In the broader market indices, Prestige Estates Projects, SunTV, Angel One, and Suzlon registered gains, while Navin Fluorine International, Union Bank, RBL Bank, and Aavas Financiers Ltd were among the top losers for the day.

Positive signals from PMI data and a correction in crude oil prices bolstered market sentiment. A reduction in foreign institutional investors (FIIs) selling activity, particularly in banking and IT shares, also provided support. Furthermore, market expectations lean towards the RBI maintaining steady interest rates, given the muted outlook for external demand and concerns regarding future disinflationary trends.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.