Nifty, Sensex Continue Upward Trend Led by RIL and Infosys Shares

The Indian stock market saw positive momentum for the second consecutive day, with the Nifty 50 and Sensex ending higher as shares of Reliance Industries Ltd. (RIL) and Infosys Ltd. played significant roles in this upward trend.

Market Performance Overview

The Nifty 50 index closed at 24,274.00, reflecting a gain of 0.59%, while the Sensex finished at 80,248.08, up by 0.56%. Earlier in the day, both indices faced challenges, with the Nifty down 0.51% at 24,008.65 and the Sensex sliding by 0.62% to 79,743.87. Market fluctuations were largely attributed to the Indian rupee hitting a record low against the US dollar and concerns over India's economic growth.

Market Recovery

As trading progressed, the major indices rebounded, with the Nifty rising by 0.71% to reach 24,273.80 and the Sensex climbing 0.67% to 80,337.82. Despite initial declines caused by geopolitical tensions, investor sentiment improved later in the day.

According to analysts, foreign institutional investors (FIIs) continued to sell in the cash market, raising concerns about the overall strength of the equity market given the country's weaker GDP projections. Experts noted that the upcoming quarterly earnings in December would be crucial for setting the direction of the equities market. "The market started December on a somewhat subdued note, but gains from the Auto and Pharma sectors, alongside select large-cap stocks, helped cushion the indices," highlighted Aditya Gaggar, director at Progressive Share Brokers Pvt.

Technical Analysis Insights

From a technical perspective, market analysts observed that the day's bullish candle suggested the Nifty might be nearing a breakout from an Inverted Head & Shoulder pattern, with immediate resistance seen at 24,350 and support at 24,100.

The strongest contributors to the Nifty's gains included shares from Reliance Industries, HDFC Bank, Infosys, UltraTech Cement, and Mahindra & Mahindra. Conversely, shares from NTPC, HDFC Life, Hindustan Unilever, Kotak Mahindra, and Cipla exerted downward pressure on the index.

Sector Performance

Across the National Stock Exchange (NSE), 10 out of 12 sectors witnessed an upward trend, with the real estate sector performing the best. Conversely, the PSU Bank sector faced declines. The broader market indices also performed well, with the BSE Midcap index increasing by 1% and the BSE Smallcap index closing 0.9% higher.

Overall, the market breadth tilted favorably toward buyers, with 2,509 stocks advancing, 1,546 declining, and 182 remaining unchanged on the BSE.

This market activity reflects a cautious yet positive outlook as major players like RIL and Infosys stabilize the market amid ongoing economic concerns.

Nifty, Sensex, Market