Sensex, Nifty Rally for 2nd Day Led by Metal & Auto Stocks

The Nifty closed 0.74 per cent, or 172.35 points higher, at 23,581.15. Similarly, the Sensex gained 568 points, or 0.75 per cent, to settle at 76,070.84.

Commenting on Nifty technical outlook, experts said that a decisive move above 23,600 could open the path towards 23,800-24,000, although this range is likely to act as a strong supply zone.

"On the downside, failure to sustain higher levels may lead to a pullback towards 23,500, followed by 23,300-23,350, where strong support is expected due to prior demand and open interest build-up," an analyst stated.

Among the top performers on the Nifty were shares of Tata Steel, Mahindra & Mahindra and Eternal, which supported the upward momentum in the market.

Market volatility eased during the session, with the India VIX declining sharply. The index fell over 9 per cent during the day and eventually settled 8.39 per cent lower at 19.79.

The broader markets also mirrored the positive trend. Both midcap and smallcap stocks ended in the green.

On the sectoral front, metal and auto stocks outperformed the benchmark indices, driving much of the gains.

However, IT and FMCG stocks lagged behind and emerged as the top sectoral losers during the session.

Analysts said that the market showed resilience despite intra-day volatility, with gains supported by selective buying in key sectors and easing volatility indicators.

"The current market setup reflects a phase of tactical recovery rather than a full trend reversal," a market expert said.

"While easing volatility and support at lower levels are aiding the bounce, persistent global uncertainties, sectoral divergence and resistance near higher levels suggest that markets may continue to witness selective participation with a cautious upward bias," they added.

- IANS