Equity benchmarks ended higher on Friday, marking their second consecutive session of gains, as pharmaceutical and automobile stocks led the advance amid subdued trading volumes ahead of the year-end.
The BSESensex closed at 78,699.07, up 226.59 points or 0.29 per cent, while the NSENifty 50 gained 63.20 points or 0.27 per cent to end at 23,813.40. The markets showed resilience despite the rupee touching new lows against the dollar and continued selling by foreign investors.
Dr Reddy’s Laboratories emerged as the top gainer on the NSE, rising 2.72 per cent, followed by IndusInd Bank at 2.37 per cent, Mahindra & Mahindra at 2.23 per cent, Tata Motors at 1.78 per cent, and Eicher Motors at 1.51 per cent. On the flip side, Hindalco led the losses with a 1.73 per cent decline, followed by State Bank of India at 1.43 per cent, Coal India at 1.40 per cent, ONGC at 1.31 per cent, and Bharat Electronics Limited at 1.02 per cent.
The market breadth remained negative, with 2,026 stocks declining compared to 1,948 advances on the BSE. A total of 4,087 stocks were traded, with 113 remaining unchanged. The session saw 155 stocks hitting 52-week highs, while 72 touched their 52-week lows.
“The Christmas week trading ended on a subdued note; a lack of major triggers and caution ahead of the swearing of US Republican Party administration continued to impact the sentiment,” said Vinod Nair, Head of Research at Geojit Financial Services. He added that the rupee’s weakness, driven by expectations of fewer Fed rate cuts and a widening trade deficit, weighed on market sentiment.
The broader market indices underperformed the benchmarks, with the Nifty Next 50 declining 0.88 per cent to 68,557.15 and the Nifty Midcap Select falling 0.18 per cent to 12,768.90. The banking sector showed moderate gains, with the Nifty Bank index rising 0.27 per cent to 51,311.30.
Market sentiment improved slightly amid speculation about potential income tax cuts in the upcoming February budget, aimed at boosting economic growth. However, experts remained cautious about the market’s near-term prospects.
“Despite ending higher for the second straight session, markets lacked conviction as indices came off their early highs amid late profit-taking in several sectoral stocks,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. He highlighted that foreign investors’ continued selling and the rupee’s record fall against the dollar were creating uncertainty among investors.
The technical outlook suggested continued resistance at higher levels. “Nifty rose for the second consecutive session and gained 63 points or 0.27 per cent, to close at 23,813. For the week, Nifty is up by 0.96 per cent,” said Nandish Shah, Senior Derivative & Technical Research Analyst at HDFC Securities. He added that the positional trend remains bearish as the index trades below key moving averages.
Sector-wise, pharmaceutical and automobile stocks showed strength while metal and realty sectors faced pressure. The NSE cash market volumes were lower by 4 per cent compared to the previous session, reflecting the holiday-season trading environment.
Looking ahead, market participants will be watching the upcoming January earnings season and the Union Budget for further direction, while global factors such as US political developments and interest rate trajectories continue to influence sentiment.
