The Indian equity markets ended higher on Friday, with pharmaceutical and automobile stocks leading the gains. The BSE Sensex closed at 78,699.07, up 0.29%, while the NSE Nifty 50 gained 0.27% to end at 23,813.40. Despite the rupee touching new lows against the dollar and continued foreign investor selling, the markets showed resilience.
Dr Reddy’s Laboratories emerged as the top gainer on the NSE, followed by IndusInd Bank, Mahindra & Mahindra, Tata Motors, and Eicher Motors. On the other hand, Hindalco, State Bank of India, Coal India, ONGC, and Bharat Electronics Limited led the losses.
The market breadth remained negative, with more stocks declining than advancing on the BSE. The session saw 155 stocks hitting 52-week highs while 72 touched their 52-week lows.
Market experts noted that the lack of major triggers and caution ahead of the US Republican Party administration swearing-in impacted sentiment. The weakening rupee, driven by expectations of fewer Fed rate cuts and a widening trade deficit, also weighed on market sentiment.
The broader market indices underperformed, with the Nifty Next 50 and Nifty Midcap Select declining. The banking sector showed moderate gains, with the Nifty Bank index rising.
While market sentiment improved slightly on speculation about potential income tax cuts in the upcoming budget, experts remained cautious about the near-term prospects. Technical analysis indicated continued resistance at higher levels, with the Nifty trading below key moving averages.
Pharmaceutical and automobile stocks showed strength, while the metal and realty sectors faced pressure. Despite lower trading volumes in the holiday season, market participants are watching upcoming earnings and the Union Budget for further direction.
In conclusion, while the markets ended higher for the second consecutive session, uncertainty persists due to factors like foreign investor selling, the rupee’s depreciation, and global political developments. It will be interesting to see how the markets evolve in the coming weeks.
