Mumbai: The domestic benchmark equity indices finished the day higher on Thursday because falling oil prices lifted investor mood and eased worries about lasting inflation.
The Sensex rose 1,533.72 points, which’s 2.11 percent to close at 74,315.61. The Nifty climbed 374.65 points or 1.66 percent to end at 22,997.35.
Nifty Faces Resistance Near 23,000–23,100
Commenting on the Nifty’s outlook, experts said that the Nifty finished on a good note after opening higher and keeping a chain of higher highs and higher lows, showing steady buying interest.
“The index regained the 23,000 level during the day but could not stay above it. On the upside the 23,000–23,100 area is the resistance. A strong move above this range could build momentum and pave the way to 23,300–23,400 ” market watchers said.
“On the downside if the index fails to stay above 22,800 it could trigger selling pressure and pull the index toward the 22,600–22,500 support area ” analysts said.
I felt hopeful after oil prices fell, which helped ease concerns, about input costs and inflation and led to buying across major stocks.
Tech Mahindra, ICICI Bank Among Top Gainers
Among the companies, Tech Mahindra, ICICI Bank and Bharti Airtel were the top gainers giving strong support to the benchmark equity indices.
The wider market did not match the headline indices. The Nifty MidCap index fell 0.36 percent. The Nifty SmallCap index dropped 1.31 percent.
Sectoral performance remained mixed during the session. While the Nifty IT index led the gains amid strong buying interest in technology stocks, the Nifty PSU Bank index was the worst-performing sectoral gauge.
The Nifty Private Bank index emerged as the top gainer among sectoral indices on the NSE.
“Near-term sustainability will therefore depend on Q2 earnings delivering on revenue and margins, broader market participation and evidence of returning foreign flows, while durable stability in oil and the currency remains crucial amid geopolitical and global inflation risks,” analysts noted.
Meanwhile, Rupee traded positively, gaining around 9 paise to 95.05, supported by a softer Dollar Index, stable crude oil prices and improved sentiment following a strong rally in domestic capital markets.