Nifty sees modest gain, Sensex inches higher; Market sentiment remains cautious amid global developments

• The stock market closed in the green on Thursday as the NSE Nifty 50 index concluded the trading session with a modest gain of 0.11%.
• The BSE Sensex ended 0.14% higher at 73,751.22, indicating a positive sentiment among investors.
• Grasim, Bharti Airtel, Nestle India, Maruti, and Tata Motors emerged as the top gainers, while Sun Pharma, BPCL, Reliance, Dr Reddy, and Hindalco were among the top losers.

The stock market closed in the green on Thursday as the NSE Nifty 50 index concluded the trading session with a modest gain of 0.11 per cent, closing at 22,361.65. Similarly, the BSE Sensex ended 0.14 per cent higher at 73,751.22, indicating a positive sentiment among investors.

Among the Nifty companies, 24 saw advances while 25 faced declines. Grasim, Bharti Airtel, Nestle India, Maruti, and Tata Motors emerged as the top gainers, while Sun Pharma, BPCL, Reliance, Dr Reddy, and Hindalco were among the top losers.

Grasim Industries, Bharti Airtel, Maruti Suzuki, Nestle India, and Tata Motors were the top gainers in the Nifty 50 index, while Sun Pharma, BPCL, Reliance Industries, M&M, and Dr Reddy's Laboratories faced declines.

In the broader market, the BSE SmallCap index surged by 1.09 per cent, and the BSE MidCap index rose by 0.52 per cent, outperforming the benchmark indices.

European stocks witnessed a second consecutive day of gains, driven by strong earnings from major companies. The Stoxx Europe 600 index climbed 0.6 per cent, with the technology sector leading the charge.

Varun Aggarwal, founder and managing director, Profit Idea, said, "Investor attention remains on corporate earnings as approximately 180 companies, representing over 40 per cent of the S&P 500 market value, are reporting results. Recent market volatility, triggered by geopolitical concerns and signals indicating a cautious stance from the Federal Reserve regarding interest rate adjustments, has kept investors vigilant."

PMI data released on Tuesday reinforced expectations that the European Central Bank (ECB) is likely to commence policy easing soon. Private-sector activity surged to nearly a year-high, buoyed by a strong services sector and Germany's return to growth.

“Domestic equity benchmarks on Tuesday, continued to rise for the third day in a row, buoyed by strong global market trends. The volatility index, India VIX, fell by 19.72% to settle at 10.20, indicating low volatility in the market. Finally, the Nifty closed the day on a positive note at 22,368. Technically, after the strong pullback rally, the index is likely to pause near 22,500-22,530 levels. If the index sustains above 22,530, the Nifty could attempt to break its all-time high of 22,776; otherwise, the index could witness consolidation in the 22,000-22,500 zone. The short-term support levels for Nifty are at 22,200 and 22,000, while resistance levels are 22,450 and 22,530," said Asit C Mehta Investment Interrmediates.

ECB Vice President Luis de Guindos suggested that a rate cut in June is highly probable, barring any unforeseen economic developments, leading to a rise in the euro against the dollar.

Treasuries remained stable ahead of upcoming bond auctions, despite yields reaching their highest levels in 2024. In the UK, the 10-year yield saw a slight uptick following the government's decision to increase the planned bond issuance for the fiscal year, contributing to one of the largest gilt packages on record.

Gold prices continued their decline amid reduced geopolitical tensions and indications of a prolonged period of higher interest rates by the Fed. Oil prices edged higher amidst ongoing developments between Israel and Iran, with signs of easing tensions following recent confrontations.

"The Bank Nifty was clearly an underperforming sector as compared to Nifty in today’s trading session. On expected lines, it respected our mentioned resistance zone of 48,000-200 in the last couple of days and marginal profit booking was witnessed after testing the same.Presently, it is trading near a crucial resistance zone of 48,000 to 48,200 levels and we believe that Bank nifty would further outperform only if it is able to decisively close above this resistance zone or else profit booking is likely from the current levels," said Tejas Shah, Technical Research, JM Financial and BlinkX.

With inputs from ANI.

SEE ALSO:

Google Pixel 8a may be more expensive than its predecessor, as per a new leak

Best smartphones under ₹25,000 in India

At 17, Indian chess prodigy D Gukesh becomes youngest challenger for World Championship