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Sensex, Nifty Rise for 2nd Day Led by PSU Bank & IT Stock Rally

Indian benchmark indices, Sensex and Nifty, closed higher for the second consecutive session, supported by gains in PSU bank and IT stocks. The Nifty PSU Bank index was the top performer, surging over 2%, while the metal sector faced selling pressure. Market experts noted the index found consistent support around the 25,550-25,600 zone, preventing a sharp breakdown. Analysts suggest the recent selloff in IT may have created attractive valuations, signaling potential for a sectoral rebound.

Key Points: Sensex, Nifty Gain on PSU Bank, IT Stock Rally

  • Sensex gains 0.21%
  • Nifty PSU Bank index jumps over 2%
  • IT stocks see renewed buying interest
  • Nifty Metal index declines around 1%
2 min read

Sensex, Nifty extend gains for 2nd day; PSU banks and IT stocks lead rally

Indian stock markets extended gains for a second session. PSU Bank and IT indices led the rally, while metals declined. Key support and resistance levels identified.

"On the downside, dips toward the 25,550-25,600 demand region attracted consistent buying interest - Market Expert"

Mumbai, Feb 17

Indian benchmark indices ended higher for the second consecutive session on Tuesday, supported by gains in public sector banks and information technology stocks, even as global cues remained largely muted.

The 30-share Sensex closed at 83,450.96, rising 173.81 points or 0.21 per cent. The broader Nifty settled at 25,725.40, up 42.65 points or 0.17 per cent.

Expert said that the recovery lifted the index above 25,700; however, upside momentum repeatedly encountered supply in the 25,760-25,800 resistance band, leading to intermittent profit booking.

"On the downside, dips toward the 25,550-25,600 demand region attracted consistent buying interest, reinforcing this zone as a near-term support base and preventing any sharp breakdown," an expert mentioned.

In the Sensex pack, stocks such as ITC, BEL, Infosys, L&T, Asian Paints and Titan were among the top gainers, climbing up to 2.3 per cent during the session.

On the other hand, Eternal, Trent, Tata Steel, RIL, M&M and Bajaj Finserv were among the laggards, slipping as much as 1.5 per cent.

The broader market also ended in the green. The Nifty MidCap index gained 0.27 per cent, while the Nifty SmallCap index rose 0.56 per cent.

Among sectoral indices, the Nifty PSU Bank index jumped over 2 per cent, emerging as the top performer of the day.

The Nifty IT index also ended higher -- reflecting renewed buying in technology stocks.

However, the Nifty Metal index declined around 1 per cent, weighed down by weakness in metal counters.

Analysts said IT stocks could see a rebound in the coming sessions after nearly Rs 5 trillion was wiped off their combined market capitalisation so far this year.

According to market experts, the recent selloff in the sector may have made valuations attractive, signalling possible undervaluation and creating room for a recovery.

Analysts said that the market managed to sustain gains for the second straight day, supported by selective buying in banking and IT shares despite the absence of strong global triggers.

Meanwhile, Rupee traded in a narrow range near 90.68 as participants await a decisive move in the dollar index or fresh cues from secondary market flows to provide direction.

Gold traded weak below Rs 1,53,500, down Rs 1,500, as CME gold slipped below $4,950, losing around $57 or 1.15 per cent, with easing geopolitical tensions reducing safe-haven demand.

- IANS

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Reader Comments

S
Sarah B
As an NRI investor, the resilience of Indian markets without strong global cues is impressive. The IT sector rebound is a welcome sign. The rupee stability around 90.68 is also a positive for foreign investments.
P
Priya S
Finally some green in my portfolio! My SIPs in Infosys and a few PSU bank stocks are paying off. But the metal index dip is worrying. Need to see if this is a sector rotation or something more.
R
Rohit P
The gains seem very modest, to be honest. Sensex up only 0.21%? With profit booking at every small rise, it feels like the market is just sideways. We need a strong catalyst for a real breakout.
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Kavya N
SmallCap index rising more than MidCap and Sensex is the real story for retail investors like me. That's where the action is. Hope the momentum continues. Good time to review my small-cap holdings.
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Michael C
Interesting to see IT leading after such a brutal sell-off. The comment about Rs 5 trillion wiped off is staggering. If valuations are now attractive, this could be a strategic entry point for long-term plays.

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