Benchmark stock market indices erased gains from early trade to close higher, helped by gains in auto stocks. IT sector stocks were major laggards on the day.
The S&P BSE Sensex gained 76.54 points to close at 80,787.30, while the NSE Nifty50 added 32.15 points to end at 24,773.15.
Vinod Nair, Head of Research, Geojit Investments Limited, said that the domestic market failed to sustain its early gains as a late-session sell-off reflected the prevailing “buy-on-dips, sell-on-rallies” strategy, highlighting investor caution.
“Auto and ancillary stocks continued to rally on expectations of demand recovery following GST rate cuts, while IT remained weak amid global uncertainties. Globally, sentiment improved after soft U.S. jobs data raised hopes of a Fed rate cut in September,” he added.
Tata Motors was the top gainer with a rise of 3.97%, followed by Mahindra & Mahindra up 3.96%, Maruti Suzuki gaining 2.32%, Adani Ports higher by 2.00%, and Tata Steel up 0.72%.
Trent led the losers on Sensex with a drop of 3.81%, Asian Paints was down 1.90%, HCL Technologies declined 1.21%, Tech Mahindra fell 1.13%, and Larsen & Toubro slipped 0.99%.
The Nifty Midcap100 gained 0.50% while Nifty Smallcap100 rose 0.16%, and India VIX climbed 0.53%.
Among the sectoral indices, several showed positive momentum with Nifty Auto leading at 3.30%, followed by Nifty Realty at 0.46%, Nifty Metal at 0.37%, Nifty Consumer Durables at 0.34%, Nifty Pharma at 0.27%, Nifty Oil & Gas at 0.24%, Nifty Financial Services at 0.21%, and Nifty Media at 0.05%.
Nifty IT faced the biggest decline at 0.94%, followed by Nifty Healthcare which dropped 0.40%, Nifty FMCG at 0.21%, and Nifty Private Bank at 0.01%. Nifty PSU Bank remained flat with no change.
“Renewed concerns over sanctions on Russian oil pushed crude prices higher, and gold extended gains as trade-related uncertainties sustained demand for safe-haven assets,” said Nair.
“On the index front, we expect the prevailing tussle to end only with a decisive breakout above the 25,000 mark on the Nifty, while the 24,400–24,600 zone should act as a cushion. We suggest closely tracking the performance of banking and IT majors for the next directional move in the index. Meanwhile, traders should continue to focus on other sectors that are holding firm and participating on a rotational basis,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
