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Business News/ Markets / Stock Markets/  Stock market today: Sensex, Nifty 50 close higher for second straight session; IT stocks shine

Stock market today: Sensex, Nifty 50 close higher for second straight session; IT stocks shine

Stock market today: Sensex closed the day 179 points, or 0.25 per cent, higher at 72,026.15 while the Nifty 50 settled at 21,710.80, up 52 points, or 0.24 per cent.

Stock market today: Sensex closed at 72,026.15 while the Nifty 50 settled at 21,710.80 on Friday, January 5. (Agencies)Premium
Stock market today: Sensex closed at 72,026.15 while the Nifty 50 settled at 21,710.80 on Friday, January 5. (Agencies)

Stock market today: Key equity indices the Sensex and the Nifty 50 ended with gains for the second consecutive session on Friday, January 5, on gains led by IT heavyweights, including TCS and Infosys, even as weak global cues and the dollar's sharp gain against its major peers capped the rise of the domestic market.

According to a Reuters report, the dollar was poised for its strongest weekly advance since mid-May as expectations for aggressive rate cuts by the Federal Reserve cooled off.

Considering the latest US labour market data, chatter around the rate cuts is losing steam.

"Traders now see a little better than 2-in-3 odds that the Fed cuts rates by March, down from a 71 per cent probability a week earlier, according to the CME Group's Fedwatch tool," reported Reuters.

Most positives are already discounted in the market, so the focus now shifts to the December quarter earnings. IT majors Infosys and TCS, both will announce their Q3 earnings next week on January 11.

On Friday, Sensex opened at 72,016.71 against the previous close of 71,847.57 and touched its intraday high and low of 72,156.48 and 71,779.83 respectively. The index finally closed the day 179 points, or 0.25 per cent, higher at 72,026.15.

The Nifty 50 opened at 21,705.75 against the previous close of 21,658.60 and touched its intraday high and low of 21,749.60 and 21,629.20 respectively. The index settled at 21,710.80, up 52 points, or 0.24 per cent.

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BSE Midcap index closed at 37,706.55, with a gain of 0.19 per cent, after hitting its fresh record high of 37,892.11 during the session.

BSE Smallcap index also hit its fresh all-time high of 43,957.62 during the session but closed at 43,819.39, up 0.61 per cent.

Nearly 500 stocks, including Bharti Airtel, IndusInd Bank, NTPC, Power Grid and Tata Motors, hit their fresh 52-week highs during the session.

Also Read: HDFC Bank, Reliance Industries, Infosys among 9 bottom-up ideas in Bernstein India Model Portfolio

For the week ended January 5, the Sensex declined by 0.30 per cent while the Nifty 50 retreated 0.10 per cent.

On the other hand, the BSE Midcap and Smallcap indices surged 2.35 per cent and 2.68 per cent, respectively, for the week.

The overall market capitalisation of the firms listed on the BSE now stands near 370 lakh crore. The number of registered investors on the BSE is now nearly 16 crore. 

Top Nifty 50 gainers today

Some 23 stocks ended higher in the Nifty 50 pack, among which shares of Adani Ports (up 2.65 per cent), Larsen & Toubro (up 2.60 per cent) and TCS (up 1.96 per cent) ended as the top gainers.

Top Nifty 50 laggards today

Shares of Britannia Industries (down 1.62 per cent), Nestle India (down 1.61 per cent) and JSW Steel (down 1.04 per cent) closed as the top laggards in the Nifty 50 index.

Also Read: Top Gainers and Losers today on 5 January, 2024: Adani Ports & Special Economic Zone, Tata Consultancy Services, NESTLE INDIA ORD, Britannia Industries among most active stocks; Check full list here

Sectoral indices today

While most sectoral indices ended lower or with smaller gains, Nifty IT jumped 1.29 per cent, bucking the trend, with nine out of a total 10 components ending higher.

IT stocks witnessed buying after the recent drubbings ahead of the Q3 numbers of major players. Some brokerage firms believe the third quarter could be the last weak quarter for the sector.

Also Read: Q3 likely to be last weak quarter, expect revenue growth for Indian IT firms from Q4: BNP Paribas

On the weekly scale, Nifty IT fell nearly 2 per cent and extended its weekly losing run into the third consecutive week.

Nifty Auto rose 0.44 per cent, followed by the Realty index which rose 0.36 per cent.

Among the laggards, Nifty Healthcare (down 0.65 per cent) and Nifty PSU Bank (down 0.38 per cent) fell the most. Nifty Bank index closed 0.08 per cent lower.

Experts' views on markets

"Nifty is likely to spend some more time within the 21,500-21,800 zone citing mixed cues but tone is likely to remain positive. Traders should maintain their focus on stock selection and risk management. In the absence of any major event, the performance of the global indices especially the US would remain in the focus for cues in the coming sessions," said Ajit Mishra, SVP of Technical Research, Religare Broking.

"The market ended on a flat note, tracking weak global cues, with the US 10-year yield edging higher ahead of the release of US payroll data later today, which may shape the expectation for the Fed policy. Investors are also staying cautious ahead of eurozone inflation data today. On the domestic front, the market is moving towards the results season, and we expect the exuberance of the broader index may be tested if the December quarter earnings do not justify the valuation," said Vinod Nair, Head of Research, Geojit Financial Services.

Technical views on Nifty 50

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas pointed out that on the way down Nifty managed to hold on to the key hourly moving averages placed in the range of 21,630 – 21,650 and bounced back to close with decent gains.

Gedia expects the Nifty to trade within the range of 21,500 – 21,850 over the next few trading sessions.

"A decisive break of this range on either side shall set the trend going ahead. Overall. the structure is still in favour of the bulls, however, a consolidation is likely over the next few trading sessions," said Gedia.

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities pointed out that following a rapid rebound from its positional support at 21,500, bullish activity has resumed in the market, with buying interest evident during dips.

"The prevailing sentiment is bullish, but Nifty encounters initial resistance at 21,750, facing selling pressure. Immediate support rests at 21,600. A conclusive close above the 21,750 level could propel Nifty towards the 22,000 mark, signalling further upward movement," said Shah.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 05 Jan 2024, 03:31 PM IST
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