Benchmark stock market indices closed higher on Thursday after recovering from early losses as information technology (IT) stocks gained later in the day over renewed hopes of rate cut from US Fed.
The S&P BSE Sensex added 158.51 points to close at 85,265.32, while the NSE Nifty50 gained 47.75 points to end at 26,033.75.
Vinod Nair, Head of Research, Geojit Investments Limited, said that domestic markets closed flat amid mixed global cues and caution ahead of the RBI policy.
“Early value-driven gains were restrained by a record-low rupee and persistent FII outflows. However, lowered expectations of an RBI rate cut supported a mild currency rebound, helping indices stabilise towards the close. IT stocks outperformed, buoyed by renewed optimism around potential Fed rate cuts and favourable currency tailwinds, which strengthened investor appetite for the sector,” he added.
Among the top gainers, Tata Consultancy Services led the rally with a rise of 1.54%, followed by Tech Mahindra, which climbed 1.28%. Infosys also moved up 1.24%, while HCLTech added 0.89%. Bharti Airtel rounded off the top five gainers with a gain of 0.83%, helping support market sentiment despite weakness in other pockets.
On the downside, selling was seen in several stocks. Maruti Suzuki was the worst performer of the day, slipping 0.71%. Eternal followed with a fall of 0.69%, while Kotak Mahindra Bank declined 0.53%. Titan dropped 0.44%, and ICICI Bank was down 0.35%.
“Weakness in the rupee continues to pressure sentiment, coupled with caution ahead of the MPC policy outcome. Additionally, mixed global cues failed to spark any meaningful reaction. Going ahead, with the MPC outcome in focus, a 25 bps rate cut appears largely priced in, making the committee’s commentary more crucial for determining the next directional move,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
