Sensex gains 575 pts, Nifty tops 25,300; what’s next for stock market?

Domestic equity benchmarks, the Sensex and Nifty, ended higher on Wednesday, tracking gains across Asian markets. Investor sentiment improved amid growing expectations of an interest rate cut by the US Federal Reserve.

At the closing bell, the Sensex advanced 575.45 points, or 0.70 per cent, to finish at 82,605.43, while the Nifty50 gained 178.05 points, or 0.71 per cent, to close at 25,323.55.
Bajaj Finance emerged as the top gainer on the Sensex, rising 4.16 per cent to Rs 1061. It was followed by Bajaj Finserv, which advanced 3.10 per cent, while Trent, Asian Paints, Eternal, and L&T gained 2.66 per cent, 2.48 per cent, 2.27 per cent, and 2.24 per cent, respectively.
Five stocks, namely, Bajaj Finance, ICICI Bank, L&T, Bharti Airtel and Eternal, contributed heavily to the Sensex’s rise.

Among sectoral indices, the BSE Metal index was 0.98 per cent higher at 33,856.72, while the BSE FMCG index rose 1.02 per cent to 20,163.58.

Within the BSE Sensex pack, Bajaj Finance and Eternal hit fresh 52-week highs at Rs 1,062 and Rs 355.70, respectively.

Overall, out of 4,314 actively traded stocks on the BSE, 2,497 ended higher, while 1,670 declined, and 147 closed unchanged. During the session, 149 stocks scaled their 52-week highs, whereas 137 slipped to 52-week lows. Meanwhile, 221 scrips were locked in their upper circuits and 154 in lower circuits.

Vinod Nair, Head of Research at Geojit Financial Services, said the domestic market edged higher after two sessions of decline, as dovish remarks from the US Federal Reserve Chair on interest rates and indications of a possible end to quantitative tightening lifted global sentiment.

“The US 10-year yield declined while the rupee gained, indicating a momentum shift in FIIs to emerging markets like India, which may navigate the domestic market trajectory in the short to medium term. Realty outperformed due to an ease in the interest rate cycle and attractive valuation, while positive global cues supported the IT and Metal indices," Nair said.