Nifty Reclaims 24,700, Broader Markets Lead; Key Test Ahead
The Indian equity market resumed its upward trajectory on Wednesday, with the Nifty 50 index reclaiming the 24,700 mark, led by gains in autos, metals, and realty sectors. The broader market also participated in the rally, with midcaps and smallcaps rising 1.4% and 1.3%, respectively.
The Nifty 50 index ended the day at 24,714, up 0.3% or 76 points, while the Sensex gained 0.4% or 231 points to settle at 84,439. The gains were broad-based, with all sectors except healthcare and IT ending in the green.
The rally was led by autos, which surged 2.1% on the back of strong sales data from Hero MotoCorp. The two-wheeler major surged 5% on the day, its highest single-day gain since April, after reporting a 23% year-on-year increase in sales in July.
The metals sector also had a strong day, with the Nifty Metal index rising 1.5% on expectations of a rebound in global commodity prices. Hindalco Industries and Tata Steel were the top performers in the sector, gaining 3.1% and 2.5%, respectively.
The realty sector was another major gainer, with the Nifty Realty index rising 1.9% on hopes of a revival in the sector after the government’s recent announcements on infrastructure development.
On the other hand, the healthcare and IT sectors were the only losers of the day, with the Nifty Healthcare index and Nifty IT index declining 0.4% and 0.2%, respectively.
The retail sentiment turned neutral on the day, with only 45 stocks advancing and 53 declining on the NSE. However, the advance-decline ratio improved significantly, with 1,141 stocks rising and 844 declining.
Analysts are now looking for the Nifty to break above the 24,980 level if the strength holds above 24,800. “If the Nifty can hold above 24,800, we may see a breakout above 24,980,” said Ruchit Jain, lead analyst at 5paisa.com. “The market is poised for a strong rally if the RBI’s rate decision tomorrow is dovish.”
The Reserve Bank of India (RBI) is set to announce its policy decisions tomorrow, and the market is expecting a rate cut to boost economic growth. A dovish stance from the RBI could lead to a strong rally in the market, while a hawkish stance could lead to a correction.
In the broader market, midcaps and smallcaps outperformed the benchmarks, with the Nifty Midcap 100 index rising 1.4% and the Nifty Smallcap 100 index gaining 1.3%. The BSE Midcap and Smallcap indices also rose 1.4% and 1.3%, respectively.
The market is likely to remain volatile in the short term, with the RBI’s rate decision and the quarterly earnings season set to drive market sentiment. Investors are advised to stay cautious and take a flexible approach to their investment strategies.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-end-higher-august-4/chrX0ORRdTd
