Sensex, Nifty end higher after sharp fag-end swings on expiry day; CAS in focus

Indian equity benchmarks ended higher on Thursday, snapping a three-session losing streak, after sharp swings in the final minutes of trade on Sensex expiry day, with the Closing Auction Session (CAS) remaining in focus.

The 30-share BSE Sensex pack, which was at 74,521.79 around 3:21 pm, jumped 1,186.55 points to 75,708.34 by 3:23 pm. On NSE, Nifty50 rose from 23,389.25 at around 3:19 pm to 23,761.65 by 3:21 pm.

Sensex eventually settled 138.36 points or 0.19 per cent higher at 74,902.59, while Nifty50 gained 46.30 points or 0.20 per cent to close at 23,477.80.

The broader market remained weaker, with Nifty Midcap100 falling 0.38 per cent and Nifty Smallcap declining 0.07 per cent.

Among Sensex constituents, HDFC Bank Ltd, Axis Bank Ltd, Bharti Airtel Ltd, Larsen & Toubro Ltd (L&T), Power Grid Corporation of India Ltd, Kotak Mahindra Bank Ltd, UltraTech Cement Ltd and Bajaj Finance Ltd were among the major gainers.

Vinod Nair, Head of Research at Geojit Investments, said, "The prospect of synchronized monetary tightening strengthened as higher crude prices and prolonged geopolitical tensions reinforced energy-led inflation concerns. Investors now await key US inflation data for cues on the rate trajectory. Meanwhile, rising global bond yields, coupled with concerns over a potential yen carry trade unwind amid expectations of a BOJ rate hike and a stronger yen, are likely to keep capital flows into emerging markets under pressure. Consequently, the domestic market endured a choppy session on expiry day amid weak Asian cues, as investor focus remained closely tethered to the volatility in crude prices. Although the strong August equity fund flow data and the moderation in the SIP stoppage ratio lent support to the markets, sentiment was tempered by the depreciating rupee and firming domestic bond yields."

Ponmudi R, CEO of Enrich Money, said, "Indian equity markets ended on a resilient note, trading within a narrow range after three consecutive sessions of sharp declines. However, the initial recovery lost momentum as the session progressed, with several sectors that had traded higher in early trade reversing course and surrendering much of their gains. The reversal underscored the lack of sustained buying interest at higher levels and the broader risk-off mood across the market. While the session suggested that selling pressure may be easing, the broader trend remains weak, with sellers still retaining the upper hand despite the possibility of a short-term relief rally following the recent decline."

Nifty outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, "Nifty closed higher as the CAS closing came high following a lacklustre session. On the daily timeframe, the index has formed a hammer pattern, suggesting a pause in the recent bearish trend. On the lower end, immediate support is placed in the 23,380–23,400 zone. On the higher end, resistance is placed at 23,550–23,600. A sustained move above 23,600 could extend the recovery towards 23,800."