Sensex Today Rallies 551 Point | Nifty Above 24,200 | Tech Mahindra & Infosys Top Gainers - Equitymaster

Indian equity markets ended the session on a strong note, with the Sensex rallying 551 points to close at 79,476. The Nifty 50 index also gained, settling above the 24,200 mark at 24,213. The rally was broad-based, with buying interest visible across most sectors, led by IT and banking stocks. Market participants took cues from positive global sentiment and expectations of policy support from the central bank.

Among the top gainers were Tech Mahindra and Infosys, which surged on the back of strong quarterly earnings and optimistic outlook for the IT sector. Tech Mahindra gained over 4%, while Infosys added nearly 3%. Other notable gainers included HCL Technologies, TCS, and Wipro, which also saw significant buying. On the other hand, some defensive sectors like FMCG and pharma witnessed mild profit booking, but the overall market breadth remained positive.

The rally was supported by strong buying from foreign institutional investors (FIIs), who pumped in over ₹1,200 crore in the cash market, according to provisional data. Domestic institutional investors (DIIs) also turned net buyers, adding to the positive sentiment. The market capitalization of BSE-listed companies increased by over ₹2.5 lakh crore during the session, reflecting the broad-based gains.

From a technical perspective, analysts say that the Nifty has formed a bullish candle on the daily chart, and the immediate resistance is placed at 24,300, followed by 24,500. On the downside, support is seen at 24,000 and 23,800. The momentum indicators, such as the RSI, are in the bullish zone, suggesting that the uptrend may continue in the near term. However, analysts also caution that the market may face volatility ahead of the upcoming US Federal Reserve meeting and domestic inflation data.

In the broader market, the midcap and smallcap indices outperformed the benchmarks, with gains of over 1.5% each. The BSE Midcap index rose 1.7%, while the BSE Smallcap index gained 1.9%. Sectorally, the Nifty IT index was the top performer, up 3.2%, followed by the Nifty Bank index, which gained 1.1%. The Nifty Auto and Realty indices also ended higher, while the Nifty FMCG index declined 0.2%.

Looking ahead, market participants will keep an eye on the monthly derivatives expiry and the release of the minutes of the RBI's monetary policy committee meeting. Additionally, the progress of the monsoon and its impact on inflation will be closely monitored. Analysts suggest that investors should maintain a stock-specific approach and focus on companies with strong fundamentals and reasonable valuations.

Here is a snapshot of the key market indices and their performance:

In a notable development, the market breadth was strong, with 2,100 stocks advancing and 1,200 declining on the BSE. The rally was led by IT stocks, which saw heavy buying after Tech Mahindra and Infosys reported better-than-expected results. Analysts attribute the surge to strong deal wins and digital transformation spending by clients.

"The market is in a sweet spot, with supportive global cues and strong domestic fundamentals. The IT sector has been a key driver, and we expect the momentum to continue in the coming sessions," said a market analyst.

The positive sentiment also lifted the rupee, which strengthened to 83.20 against the US dollar, up from the previous close of 83.35. The 10-year government bond yield remained stable at 7.05%, reflecting investor confidence. As the market continues to scale new highs, investors are advised to stay cautious and avoid chasing momentum stocks without proper research.

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