Stock market today: Nifty 50 closes above 25,000, Sensex nears 82,000; IT stocks drive rally

Nifty 50 ended the session with a gain of 0.42 percent, closing above the 25,000 mark at 25,041 points. Similarly, the S&P BSE Sensex also closed higher, with a surge of 0.43 percent, reaching 81,912 points.

A Ksheerasagar
Published10 Sep 2024, 03:41 PM IST
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Stock market today: Nifty 50 ends above 25,000, Sensex nears 82,000; IT stocks lead gains.
Stock market today: Nifty 50 ends above 25,000, Sensex nears 82,000; IT stocks lead gains.(Bloomberg)

The Indian stock market extended its gains for the second consecutive trading session on Tuesday, buoyed by a rally on Wall Street overnight amid hopes of a potential Fed rate cut next week.

IT and pharma stocks led the surge, with the Nifty IT stocks rising 5 percent, fueled by optimism over rate cut and a positive outlook from domestic brokerage firm Motilal Oswal.

Mid-cap and small-cap indices outperformed the benchmark, with the Nifty 50 gaining 0.42 percent, to close above the 25,000 mark at 25,041 points. 

Of the 50 stocks, 33 closed in positive territory, with Divi's Laboratories, LTIMindtree, Bharti Airtel, Wipro, and HCL Technologies all rising between 2 percent and 5 percent.

Also Read | HUL, Dabur, DMart... over 250 stocks hit 52-week highs on BSE; check details

Similarly, the S&P BSE Sensex also closed higher, with a surge of 0.43 percent, reaching 81,912 points.

The Nifty Midcap 100 index closed up 1.19 percent at 59,039 points. Renewable energy stocks SJVN and Suzlon Energy were among the top gainers, with SJVN increasing by 5.9 percent and Suzlon Energy rising by 5 percent. Coforge and Zee Entertainment Enterprises gained 5 percent and 4.4 percent, respectively.

Similarly, the Nifty Smallcap 100 index rose 1.15 percent, led by a 6.5 percent increase in Piramal Pharma. Other top performers included Himadri Speciality Chemicals, ITI, Firstsource Solutions, and Century Textiles & Industries, which all gained over 5 percent.

Also Read | US Fed’s expected rate reversal: What’s at stake for India

Nifty IT index posts largest intraday gain in September

The Nifty IT index posted its largest intraday gain of September, closing up 1.73 percent at 42,664 points. All 10 stocks in the index closed in positive territory, supported by expectations of a US Federal Reserve rate cut and increased technology spending in the US.

Foreign Portfolio Investors (FPIs) have increased their investments in IT stocks in anticipation of a possible Federal Reserve rate cut this month. In July, they poured 117.63 billion ($1.40 billion) into IT stocks—the highest since the new sectoral classification in 2022. In August, FPIs purchased IT shares worth 40.36 billion, alongside 51.99 billion in healthcare stocks.

Driven by these FPI inflows, the IT index gained 4.7 percent in August.

Pharma gains from Biosecure Act

Pharmaceutical stocks also contributed to the market's strength. The Nifty Pharma index ended today’s session 1.08 percent higher, at 23,256 points, with 14 out of 20 stocks in positive territory. 

Divi's Laboratories, Granules India, and Laurus Labs led the gains, up 4.9 percent, 4.1 percent, and 3.21 percent, respectively.

Also Read | Indian CDMO stocks in focus as US House votes on Biosecure Act next week

The US House of Representatives' passage of the Biosecure Act, aimed at reducing US biopharmaceutical dependence on China, has provided a tailwind to Indian pharma stocks. This legislation bans collaborations with five major Chinese firms, likely benefitting Indian pharma companies as US firms look to shift their manufacturing away from China. Contract development and manufacturing players in India, such as Divi's Labs and Laurus Labs, are anticipated to see increased demand.

Snack stocks jump up to 10% after GST cut on namkeen

Shares of snack companies like Bikaji Foods International, Gopal Snacks and Prataap Snacks rallied up to 10 percent on Tuesday following the 54th GST Council's decision to reduce Goods and Services Tax (GST) on extruded namkeen snacks from 18 percent to 12 percent.

Also Read | Bikaji Foods, Gopal Snacks, Prataap Snacks shares jump up to 10% on GST cuts

Bikaji Foods saw a 7.76 percent jump, Gopal Snacks surged 10 percent, and Prataap Snacks shares rose 8.05 per cent.

Nifty 50 outlook

“Nifty remained volatile throughout the day, unable to sustain levels above 25,100. The RSI remained in a bearish crossover on the daily timeframe, indicating continued weakness. Sentiment is expected to stay weak in the near term unless Nifty manages a close above 25,100. On the lower side, support is seen at 24900; if breached, the index may decline further towards 24750, said Rupak De,” Senior Technical Analyst at LKP Securities.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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First Published:10 Sep 2024, 03:41 PM IST
Business NewsMarketsStock MarketsStock market today: Nifty 50 closes above 25,000, Sensex nears 82,000; IT stocks drive rally

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