Investor sentiment remained strong, helping the Indian equity market end near the day’s high in an otherwise rangebound session.
Top gainers on the Nifty included Jio Financial, Asian Paints, and Apollo Hospitals. On the flip side, Tata Consumer, Dr. Reddy’s, and Wipro were among the top laggards, witnessing some profit booking.
For the week, the market logged gains for the second consecutive week, with the frontline indices rising over 2% each.
Banking stocks continued their rally, pushing the Nifty Bank index to a fresh all-time high above the 57,400 mark.
The Midcap and Smallcap indices continued their strong run for the sixth day in a row. The Nifty Midcap 100 rose 0.27%, while the Nifty Smallcap 100 climbed 0.91%, with both indices closing at their highest levels since January 3.
Among sectoral indices, Nifty Oil & Gas, Healthcare, and Pharma were the top performers, while Realty, IT, and FMCG ended in the red.
Shares of IndusInd Bank closed 3% higher after sources indicated that top private sector bankers are in the fray for the CEO role. Contenders include Rajiv Anand, Deputy Managing Director at Axis Bank; Anup Saha, Managing Director of Bajaj Finance; and Rahul Shukla, Group Head of Commercial and Rural Banking at HDFC Bank, who is currently on sabbatical.
On the global front, US index futures are marginally positive ahead of the release of the Personal Consumption Expenditures (PCE) inflation data. Decline in the US dollar index amid weak Q1 US GDP (0.5% contraction vs 2.4% growth in Q4 2024), was a significant element supporting India equities.
Going ahead, Siddhartha Khemka of Motilal Oswal expects the market to witness a steady uptrend, supported by improving institutional inflows, prospects of a US-India trade deal, and sectoral tailwinds from RBI’s liquidity measures and an above-average monsoon forecast.
Nandish Shah of HDFC Securities believes the short-term trend for the Nifty remains positive, as the index continues to trade above key short-term moving averages.
“The Nifty has now entered the downward gap zone of 25,640-25,740, created on October 3, 2024. A decisive close above 25,740 could provide the momentum needed to push the index towards the next psychological and technical resistance at 26,000. On the downside, 25,317 now serves as an important immediate support level,” Shah said.
Rupak De of LKP Securities advised that a buy-on-dips approach appears more appropriate at current levels, following the recent sharp upmove.
With no major resistance seen until the 25,750-25,800 zone, the index may continue its upward trajectory. However, the rally may not be steep and could take time to reach the 25,800 mark. On the downside, support is placed at 25,500; a break below this level could lead to some consolidation, he added.
In case of Nifty Bank, as long as the index sustains above 56,800-57,000, the broader outlook remains constructive, said Om Mehra of SAMCO Securities. “A decisive close above 57,500 could potentially open the gate toward 58,000 in the near term, while 55,800 remains a key short-term support on any pullback.”
Here are the stocks to watch ahead of Monday’s trading session:
– BHEL gets ₹6,500 crore order for six thermal units of 800 MW from Adani Power.
– Hindustan Aeronautics recommends final dividend of ₹15 per share for FY25.
– ITD Cementation secures $67.4 million (approxmately ₹580 crore) international marine contract in Abu Dhabi.
– Piramal Enterprises invests ₹700 crore in arm Piramal Finance via rights issue.
– Alembic Pharmaceuticals gets US FDA approval for Doxorubicin Hydrochloride Injection.
– GAIL to acquire 106.75 crore equity shares of Talcher Fertilizer.
– Hindustan Oil Exploration Company (HOEC) stops production at Block B-80 due to adverse weather conditions.
– Central Bank Of India acquires 25.18% stake in Future Generali India Life Insurance Company.
– Prestige Estates and Arihant Group signs agreement for Velachery land; to develop a premium residential project with Gross Development Value (GDV) of over ₹1,600 crore.
– Le Lavoir signs Memorandum of Understanding (MoU) with Ghantiram Foods to acquire 64.50% stake in company.