Sensex closes 351 pts higher, Nifty above 22,500: Key factors behind the rally today

Benchmark indices ended higher on Thursday in a highly volatile trading session. Nifty rose 80 pts to 22,514 and Sensex ended 351 points higher at 74,227 on the derivatives expiry day. Top gainers on the Nifty were HDFC Bank, Titan, Tech Mahindra, Eicher Motors and Asian Paints, rising up to 3.15%. ONGC, Adani Ports, Shriram Finance, BPCL and Bharti Airtel were the top Nifty losers, falling up to 2.12%.

On Sensex, HDFC Bank, Titan, Tech Mahindra, Asian Paints and TCS  were the top gainers, rising up to 3.06%.  On Sensex, 18 stocks closed in the green. Market cap of BSE-listed firms rose to Rs 398.38 lakh crore. Market breadth was positive with 2454 stocks rising against 1395 ending lower on BSE. 98 shares were unchanged.

Here’s a look at factors which led the rally in market today.

1. Consumer durables, banking shares gain

Consumer durables, banking and IT stocks were the top sectoral gainers with their BSE indices rising 448 points, 307 points and 332 points, respectively on BSE.

2. Decent Q4 earnings expectations

Vinod Nair, Head of Research, Geojit Financial Services, “The broader market has shown resilience in select sectors like banks in anticipation of decent Q4 results and exports based on composite PMI data reflecting strong business conditions."

3. Expert quote

Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty remained highly volatile as the index fluctuated within the range of 22,300 and 22,600 throughout the day. On the daily chart, the index has formed a hanging man pattern, indicating a potential bearish reversal in the short term. Immediate support is positioned at 22,300; a decisive drop below this level could lead the index towards 22,000-21,900 in the short term. On the upside, resistance is observed at 22,600-22,650."

Previous session

Indian equity indices ended on a flat note on April 3. Sensex was down 27.09 points or 0.04 percent at 73,876.82, and the Nifty was down 18.60 points or 0.08 percent at 22,434.70.