Stock market closing: Sensex climbs over 1,000 points to close the week, Nifty ends the day at over 24k mark

Both Sensex and Nifty regained their mojo back on the final trading session of the week. While Sensex zoomed 1,330.96 points to close the week at over 80,000 (80,436.84 points), Nifty inched up 1.65% to close the day at 24,541.15 points. Out of the 50 Nifty stocks, 47 saw advances, while only 3 declined as of August 16th, 2024.

Wipro (up by 4.23%), Tech Mahindra (up by 3.98%), Grasim (up by 3.65%), Mahindra and Mahindra (up by 3.45%) and Tata Motors (up by 3.36%) were amongst the biggest gainers during the day. On the other hand, Divis Labs (down by 0.62%), SBI Life (down by 0.07%) and Dr. Reddy (down by 0.02%) were amidst the leading laggards.

Out of the 2,797 stocks traded during the day, 1,872 saw advances, while 845 declined and another 80 remained unchanged. 95 stocks hit their 52-week high price, while 31 stocks also hit their 52-week lows. 112 stocks hit the upper circuit, or the maximum permissible trading price of a security during a single trading session. This included Ola, which was up by 20%, Akums Drugs and Pharmaceuticals (up by 10%) and Jindal Poly Films (up by 17.75%). 76 stocks also hit the lower circuit, which included names like MTNL, Dolphin, DCX Systems and more.

Most broad market indices closed the day in green, with Nifty Next 50 inching up by 1.82%, Nifty 100 up by 1.66%, Nifty mid cap 50 up by 2.03%, Nifty small cap 50 up by 2.24% and micro caps up by 2.07%. The only exception to this was India VIX, which slipped by 6.68%.

Amidst sectoral indices, banks rose by 1.59%, auto was up by 2.01%, financial services was up by 1.7% and FMCG was up by 1.48%. IT (up by 2.89%), media (up by 2.09%) and realty (up by 2.49%) inched up over 2% during the day, while metals and consumer durables moved up by 1% each.

Santosh Meena, Head of Research, Swastika Investmart Ltd notes that Indian markets joined the global rally today, rebounding after a brief period of underperformance driven by FIIs' selling in both the cash and F&O segments. Concerns over slightly weaker earnings, high valuations, and the Hindenburg issue had weighed on the market recently. However, a shift in global sentiment from panic to optimism has fueled today's upturn.

"Several factors have contributed to this bullish momentum. The fear of a reversal in the yen carry trade has subsided, and strong retail sales figures, along with better-than-expected job data, have alleviated concerns about a potential U.S. recession. Additionally, the market is now fully pricing in a 25 basis point rate cut by the U.S. Federal Reserve in September, further boosting investor confidence. If the Nifty can sustain above its 20-DMA, around 24,500, the bullish momentum could extend towards the 24,800-25,000 zone. On the downside, the 24,200 level now serves as a key support", he continued.

Ajit Mishra – SVP, Research, Religare Broking Ltd noted that markets staged a robust recovery on Friday, gaining nearly 1.5%, driven by positive global cues. After opening with a gap-up, the Nifty initially lost all its gains in the early hours but rebounded due to strong buying interest in select heavyweight stocks. As a result, the Nifty decisively crossed the resistance at 24,400, closing near the day's high at 24,541.15. The rally was broad-based across sectors, with IT, realty, and auto stocks leading the gains. The broader indices also showed a solid recovery, each advancing nearly 2%.

"With the Nifty breaking out of its consolidation phase, it appears poised to close the gap around the 24,700 level. If there is any dip, the 24,300-24,400 zone should provide support. We recommend aligning trades with a focus on stock picking. In the absence of any major domestic triggers, attention will remain on global market performance for further cues", said Mishra.