July 4, 2024
New Delhi, India
Sensex, Nifty End Higher Amid Volatility; IT Stocks Shine
Introduction Indian stock markets closed on a positive note on Thursday, with the Sensex and Nifty indices ending marginally higher despite ongoing volatility. Gains were led by the Information Technology (IT) and healthcare sectors, while auto and realty sectors also saw modest gains.
Sector Performance
- IT and Healthcare: Both sectors rose by 1% each, leading the market rally.
- Auto and Realty: These sectors were up by 0.5% each.
- Media: The media index, however, shed 0.4%.
Market Highlights
- Sensex: The BSE Sensex rose by 63 points or 0.08% to close at 80,049.67.
- Nifty 50: The NSE Nifty 50 gained 15.65 points or 0.06% to end at 24,302.
- Bank Nifty: The banking index closed in the green, up 14 points or 0.03% at 53,103.70.
- Nifty Midcap 100: This index outperformed, closing 325 points or 0.58% higher at 56,618.60.
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Market Drivers IT stocks propelled Indian shares higher, reflecting gains in Asian markets. Softer U.S. economic data raised expectations for a potential interest rate cut in September, boosting market sentiment. In the near term, the bullish undercurrent of the market is expected to outweigh the high valuations. The rally is currently led by private large-cap banking stocks, which are still considered fairly valued despite recent gains.
Foreign Institutional Investors (FII) Activity Foreign Institutional Investors (FIIs) played a significant role in the market’s performance. The previous day’s big FII buying of ₹5,484 crores was driven by massive delivery-based buying in banking stocks, particularly HDFC Bank. This trend is expected to continue, providing resilience to the market.
Conclusion Despite market volatility, Indian equity indices ended higher on Thursday, with strong performances from IT and healthcare sectors. The market rally, driven by bullish sentiment and substantial FII activity, particularly in the banking sector, is likely to continue in the near term.
Disclaimer:
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