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Business News/ Markets / Stock Markets/  Stock Market Today: Sensex settles over 500 pts higher, Nifty 50 above 22,200 as markets pare losses led by IT, metals

Stock Market Today: Sensex settles over 500 pts higher, Nifty 50 above 22,200 as markets pare losses led by IT, metals

Stock Market Today: The Sensex settled 535.15 points higher to close at 73,158.24 and the Nifty 50 was up 162.50 points or 0.74 percent to hit its highest-ever closing level of 22,217.50.

Sensex, Nifty settled higher on Thursday led by heavyweights (Unsplash)Premium
Sensex, Nifty settled higher on Thursday led by heavyweights (Unsplash)

Stock Market Today: Domestic equity indices Sensex and Nifty 50 settled higher on Thursday, February 22, rebounding from early losses driven by gains in information technology (IT), automobile, and metal stocks. 

The frontline indices started flat earlier today and were down 0.8 per cent each due to volatility over mixed global cues. The extended profit booking from the previous session dragged the Nifty 50 below 21,900, intraday. However, the last two hours of buying amid improving domestic macroeconomic indicators and positive global cues-- including impressive earnings from the US technology space, helped Nifty 50 to end near the day's high.

Also Read: Nifty IT index breaks 3-day losing streak, climbs nearly 2%

The Sensex settled 535.15 points higher to close at 73,158.24 and the Nifty 50 was up 162.50 points or 0.74 percent to hit its highest-ever closing level of 22,217.50. The volatility index has remained near the 10-month highs it hit three weeks back, ahead of India's budget.

The Nifty 50 index hit its record-high mark for the fourth straight session today at 22,252.50. The index recorded its previous lifetime peak at 22,196.95 points on February 20. The broader markets recovered late in the trading session on Thursday with the Midcap index up over 1.1 per cent, and the Smallcap index up 0.7 per cent, snapping two consecutive sessions of losses.

The minutes of the US Federal Open Market Committee (FOMC) meeting showed policymakers remain attentive to the trajectory of inflation, with some worried that progress toward the Fed's two per cent target could stall. Fed officials agreed borrowing costs were likely at their peak, but the exact timing of the first interest-rate cut remained unclear.

In Asian markets, Japan's benchmark Nikkei 225 index surged past the record it set in 1989. The index closed Thursday at 39,098.68, up 2.2 per cent. It had been hovering for weeks near 34-year highs. Hang Seng of Hong Kong and China's Shanghai Composite also ended with sharp gains. European stocks were also mostly trading in the green. 

The rupee appreciated 13 paise to close at 82.83 (provisional) against the US dollar on Thursday, tracking the weakness of the American currency in the overseas market and positive domestic equities. Forex traders said elevated crude oil prices weighed on the local unit and restricted a sharp uptick.

Also Read: As Nikkei hits record high surpassing 1989 peak, Uday Kotak shares 2 takeaways from index’s 35 year journey

At the interbank foreign exchange, the local unit opened at 82.94 against the greenback. It hit an intraday high of 82.83 during the day. The domestic unit finally settled at 82.83 (provisional) against the dollar, higher by 13 paise from its previous close of 82.96.

Top gainers, losers today

HCL Tech advanced 2.9 per cent, while TCS added 2.4 per cent, leading gains among IT firms, which get a major part of their revenue from the US. They were among the top Nifty gainers as well, as were Bajaj Auto and Eicher. They added over three per cent each to lead auto stocks 1.64 per cent higher.

Bellwether auto stock Maruti gained 1.79 per cent, while Tata Motors rose 1.20 per cent. Tech Mahindra, Wipro, and L&T were among the other major gainers.

ITC, the sixth-heaviest Nifty stock, rose 2.8 per cent after media reports said the FMCG company would buy a 47 per cent stake in Prataap Snacks, which increased 4.1 per cent.

On the other hand, stocks of all major banks closed in the red with IndusInd Bank falling 1.87 per cent, HDFC Bank dropped 1.28 per cent, Kotak Mahindra Bank declined 1.11 per cent and SBI slipped 0.73 per cent.

Sectoral Indices Today

IT stocks jumped 1.94 per cent after shedding 2.8 per cent in a three-session losing run heading into the release of the minutes of Federal Reserve's latest policy meeting, which did nothing to change expectations of US rate cuts starting in June.

Among sectoral indices, BSE Auto gained the maximum by 1.85 per cent, followed by IT which rose by 1.83 per cent and Capital Goods which went up by 1.80 per cent. BSE Teck rose 1.59 per cent, while industrials climbed 1.50 per cent and power ended 1.38 per cent higher. BSE Bankex was the only index that ended with a marginal loss of 0.04 per cent.

Experts' views on markets

"The domestic market staged a recovery from the day’s low, buoyed by positive PMI data from the Eurozone and an impressive earnings report from US tech stocks. The broader market showed resilience as India’s economic activity continued to expand in February, with both service and manufacturing PMI improving. Consequently, it resulted in outperformance in discretionary stocks and capital goods,'' said Vinod Nair, Head of Research, Geojit Financial Services.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said, ‘’Nifty surged to a new all-time high, reaching the 22,252 mark, while Sensex also saw a significant increase. Despite concerns over lower inflation highlighted in FOMC minutes, Dalal Street benchmarks continued to break records. Bank Nifty showed a mild decline, with Nifty IT emerging as a strong performer.''

‘’Market metrics showed a positive trend with an Adv-Dec ratio of 35—15 and a decrease in INDIA VIX…Technically, Nifty's support lies at the 22,101 mark, suggesting a resilient bullish sentiment despite corrective declines,'' added Tapse.

Technical views on Nifty 50

Rupak De, Senior Technical Analyst, LKP Securities said, ‘’The market remained highly volatile due to the weekly expiry of Nifty options. On the lower end, it found support at the 21EMA before rallying towards higher levels. The momentum indicator has experienced a bullish crossover. Overall sentiment has turned positive once again, with the potential to reach towards 22,400/22,600 in the short term. On the lower end, support is placed at 22,100."

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 decision.

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Published: 22 Feb 2024, 03:31 PM IST
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