The Indian equity market witnessed a positive trend for the second consecutive day, with the Sensex and Nifty closing higher. The market was driven by strong performances in the power and retail sectors, despite cautious sentiment ahead of crucial US inflation data.
Power stocks, in particular, led the rally, with NTPC, Trent, and Power Grid Corporation among the top gainers. On the other hand, Mahindra & Mahindra and banking stocks such as Axis Bank and Bajaj Finance faced selling pressure.
Market breadth remained positive, with more stocks advancing than declining. The session also saw several stocks hitting their 52-week highs.
The market’s volatility was attributed to factors such as elevated US bond yields, a strengthening dollar, and increasing FIIs outflows. Investors are closely monitoring the upcoming US December CPI inflation data, which could impact the Federal Reserve’s monetary policy decisions.
Technical analysts remain cautious, highlighting resistance levels and negative chart patterns. They suggest that key earnings reports from companies like Reliance, Infosys, and Axis Bank could provide directional cues for the market.
Overall, the market’s performance reflects concerns over rising oil prices and their potential impact on domestic inflation. Traders and investors continue to monitor global cues, especially the upcoming US inflation data, which could influence foreign fund flows into Indian equities.
In conclusion, the Indian equity market is navigating through a mix of domestic and international factors, and investors are advised to stay cautious and watch for key market triggers in the coming days.
