On Wednesday, the stock market witnessed a significant surge, with 78 stocks reaching their 52-week highs. Notable names included Bharti Airtel, HDFC Bank, and Eicher Motors. Conversely, 30 stocks recorded 52-week lows, among them Sheela Foam and Gensol Engineering. This mixed bag of performance highlights the dynamic nature of the market as investors navigate through various economic signals.
Market Performance Overview
The Nifty 50 and Sensex indices enjoyed a third consecutive day of gains, largely driven by the banking sector’s robust performance. Investors showed a willingness to overlook global trade tensions, focusing instead on positive developments within the domestic market.
- Nifty 50 rose by 0.47%, closing at 23,437.20.
- Sensex increased by 0.4%, finishing at 77,044.29.
- Over the last three days, Nifty 50 has surged by 4.6%.
This upward momentum can be attributed to several factors, including tariff exemptions from US President Donald Trump, optimisms surrounding a potentially strong monsoon season, and the likelihood of interest rate cuts in India.
Sector Highlights
According to Vaibhav Vidwani, a Research Analyst at Bonanza, the banking and media sectors led the charge, with IndusInd Bank and Axis Bank showing particularly strong performances. Meanwhile, both the auto and pharmaceutical sectors experienced minor setbacks.
The earlier market pressures stemmed from a global risk-off sentiment related to US tariffs and downgraded growth outlooks. Nevertheless, India stands out as the first major market to fully rebound from the losses following the US reciprocal tariff announcement on April 2, thanks to increased participation from domestic investors and foreign inflows. Investors are now closely watching for upcoming Q4 earnings reports from key IT and financial firms, which could further shape market sentiment.
Nifty 50 Technical Outlook
Rupak De, a Senior Technical Analyst at LKP Securities, reported that the Nifty 50 managed a solid close, overcoming initial fluctuations. The index has remained above the 100-EMA for two consecutive sessions, indicating a potentially bullish trend.
- Support Level: 23,300
- Resistance Level: 23,650
De suggests that as long as the index stays above the support level of 23,300, positive sentiment is likely to continue. However, a drop below this mark could lead to corrections towards 23,150 or 23,000.
Conclusion
In summary, the stock market’s current trajectory reflects a blend of domestic resilience and cautious optimism, aided by robust banking sector performance. With earnings season on the horizon, investors are urged to stay alert and informed about the evolving market dynamics. For more insights on market trends, check out our analysis on the impact of US tariffs on Indian stocks.
