Sensex, Nifty extend gains for 2nd day as IT, pharma stocks lead rally
Mumbai, Oct 30
Indian equity benchmarks closed in positive territory for the second straight session on Friday, driven by buying in IT and pharma counters, while broader markets remained under pressure.
The Sensex advanced 308.49 points, or 0.42 per cent, to settle at 74,459.53, while the Nifty gained 116.35 points, or 0.51 per cent, to close at 23,053.10.
Commenting on the Nifty technical outlook, experts said that after a few sessions of consolidation, the index witnessed a breakout, closing above the crucial 22,800 level and decisively reclaiming its 20-DMA.
"On the 3-hour chart, a symmetrical triangle pattern is developing, with a breakout above 23,250 required for confirmation. The short-term outlook remains positive as long as the index sustains above 22,800," analysts stated.
"Traders can consider booking partial profits near 23,250 while holding the remaining long positions with a trailing stop-loss of 22,950," market watchers stated.
Market sentiment received a boost as the unwinding of crowded artificial intelligence-linked trades in global markets improved the outlook for domestic technology stocks.
The strength in heavyweight IT companies helped Indian equities outperform most of their Asian counterparts during the session.
Among the Nifty constituents, Trent, InterGlobe Aviation and Infosys emerged as the top gainers, leading the benchmark's advance.
However, the broader market lagged behind the frontline indices. The Nifty MidCap 100 index declined 0.93 per cent, while the Nifty SmallCap 100 index fell 1.85 per cent.
Sectoral performance remained mixed. The Nifty IT index was the best-performing sector of the day, supported by renewed buying interest in technology stocks. Pharma shares also witnessed strong demand, contributing to the benchmark gains.
On the other hand, the Nifty Consumer Durables index ended as the biggest sectoral loser.
"Large-caps showed relative resilience, supported by IT, where selective buying emerged amid a rotation away from global AI plays, while pharma and healthcare gained on encouraging earnings and defensive demand," according to the market experts.
— IANS
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