Sensex, Nifty end higher as rupee strengthens
Mumbai, May 22
The domestic benchmark indices ended higher on Friday, supported by a sharp appreciation in the Indian rupee against the US dollar and gains in banking and financial services stocks.
The Nifty rose 64.60 points, or 0.27 per cent, to close at 23,719.30, while the Sensex gained 231.99 points, or 0.31 per cent, to settle at 75,415.35.
Commenting on Nifty technical outlook, experts said that on the downside, immediate support is placed at 23,600, below which the index may drift towards 23,400.
"A breach below 23,400 could trigger a sharper correction in the market. On the higher side, a decisive move above 23,800 may induce a fresh directional upmove in the short term," an analyst stated.
"A decisive breakout from this range is essential for the next leg of rally or correction to unfold," an analyst added.
Investor sentiment received a boost after the Indian currency appreciated sharply during the trading session.
The rupee strengthened by 51 paise to touch an intra-day high of 95.69 against the US dollar. However, it later pared some gains and settled at 96.20 per dollar.
Among the top gainers on the Nifty index were Trent, Shriram Finance, and Axis Bank, as financial and banking counters remained in focus throughout the session.
In the broader market segment, the Nifty MidCap ended 0.14 per cent higher, while the Nifty SmallCap slipped 0.15 per cent.
Sector-wise, the Nifty Private Bank, Nifty Financial Services, and Nifty Bank outperformed the broader market.
On the other hand, the Nifty Pharma, Nifty Healthcare, and Nifty Media ended the session in the red.
"Market is in a buy-on-dips and sell-on-rallies pattern. A sustained uptrend will likely require geopolitical stability and softer oil prices, which would strengthen macro conditions and improve FII sentiment, especially as corporates head into a weak Q1 FY27," a market expert mentioned.
— IANS
Reader Comments
Sensex and Nifty up but I'm still waiting for my mutual funds to give good returns. Pharma sector down again, that's worrying. Hope the RBI continues to manage the rupee well.
Sell on rallies? I've been hearing that for months now and the market keeps going up. FIIs are buying again, that's a positive sign. Let's hope Q1 earnings are better than expected.
Interesting that the Nifty MidCap is up but SmallCap is down. Shows that investors are being cautious about risk right now. The rupee appreciation is a double-edged sword - good for imports but bad for export-oriented sectors.
Banking and financial services leading the rally is a good sign for the broader economy. But I'm concerned about the pharma sector weakness - it's such an important industry for India. Government should focus on supporting it.
"Buy on dips and sell on rallies" is a boring strategy but it's working for me right now. Holding onto my Axis Bank shares since they're gaining. Hope the rupee stays strong so FIIs keep coming back. 🇮🇳📈
A 51 paise gain in the rupee is significant but it settled at 96.
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