Mumbai, Nov 16: In a turnaround, the stock market witnessed a bullish closure on Thursday, with both Sensex and Nifty securing gains.

Sensex soared by 306.55 points, reaching 65,982.48, while Nifty exhibited strength, closing 89.75 points higher at 19,765.20. The bullish momentum was further highlighted by advances outnumbering declines among Nifty companies.

Among the Nifty companies, Hero Motocorp, Tech Mahindra, HCL Technologies, TCS, and Infosys emerged as the top gainers, contributing to the positive market sentiment.

On the flip side, Axis Bank, Coal India, Adani Enterprises, Tata Consumer Services, and ICICI Bank faced declines at the time of market closing.

Varun Aggarwal, founder and managing director, Profit Idea, said, "The smallcap stocks exhibited a relentless bullish trend, with the Nifty Smallcap50 leading the way with a remarkable 1.6 per cent increase. The post-Diwali rally contributed significantly to investors' wealth, adding approximately Rs 3.3 lakh crore. The total market capitalization of all BSE-listed stocks surged to Rs 325.41 lakh crore".

Aggarwal said, "Driven by enthusiastic participation from retail investors, the momentum in smaller stocks remained robust. Nifty bulls expressed optimism, anticipating a resurgence in large-cap stocks that could propel the index beyond the 20,000 mark".

The market rally was initiated by a global equity surge, triggered by softer-than-expected US inflation data.

Sensex opened at 65,665.87 and reached a high of 66,358.37, surging more than 650 points. Nifty, starting at 19,674.70, recorded a high of 19,875.25, reflecting a robust uptrend.

Notably, smallcap stocks displayed relentless bullishness, with the Nifty Smallcap50 leading with a remarkable 1.6 per cent increase.

The post-Diwali rally contributed significantly to investor wealth, adding approximately Rs 3.3 lakh crore. The total market capitalization of all BSE-listed stocks surged to Rs 325.41 lakh crore.

Global optimism was fueled by softer-than-expected October US inflation data, suggesting a potential conclusion to the US Federal Reserve's rate hike cycle.

The 3.2 per cent inflation figure and a mere 0.2 per cent month-on-month increase in core inflation provided a positive outlook.
Domestically, continuous buying by Domestic Institutional Investors (DIIs) played a pivotal role in preventing downturns.

Overseas, Foreign Institutional Investors (FIIs), who had been sellers since September, showed a diminished intensity of selling in November.

The day's rally was predominantly steered by the outperformance of Information Technology (IT) stocks.

Nifty IT surged by about 2.6 per cent, with Tech Mahindra, Coforge, and Mphasis leading the pack. Heavyweights like Infosys and TCS also rallied around 2-3 per cent each.

The market is anticipated to remain rangebound, with Nifty facing resistance at 19,767 on the spot. The short-term support on Nifty lies at 18,837, while major support is expected at 18,468-18,134.

Investors are advised to remain positively biased on the Indian economy for the medium term.

Aggarwal said, "Volatility is expected to continue. Expect India to outperform global markets. We expect lot of inflows coming in Indian Markets. SIP's have been on rise every month and lot of money is available with fund managers to park if dip comes".

He added, "Investors should utilise this opportunity for medium term to accumulate quality mid and small cap stocks. We expect IT, Banking, Pharma, FMCG, Petrochemicals, Metals sector to do good".

While volatility is expected to continue, India is poised to outperform global markets. Inflows into the Indian markets are anticipated, and investors are encouraged to capitalize on this opportunity for medium-term accumulation of quality mid and small-cap stocks.

Sectors like IT, Banking, Pharma, FMCG, Petrochemicals, and Metals are expected to perform well.

(ANI)

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