Sensex surges 1,534 points, Nifty reclaims 23,000 as falling oil prices boost sentiment
Mumbai, Oct 15
The domestic benchmark equity indices ended sharply higher on Thursday as easing oil prices boosted investor sentiment and soothed concerns over sustained inflationary pressures.
The Sensex surged 1,533.72 points, or 2.11 per cent, to close at 74,315.61, while the Nifty advanced 374.65 points, or 1.66 per cent, to settle at 22,997.35.
Commenting on Nifty technical outlook, experts said that Nifty ended on a positive note after opening higher and maintaining a sequence of higher highs and higher lows, reflecting sustained buying interest.
"The index reclaimed the crucial 23,000 mark during intraday trade but failed to sustain above it. On the upside, 23,000-23,100 remains the immediate resistance zone. A sustained breakout above this range could strengthen bullish momentum and open the way toward 23,300-23,400," market watchers stated.
"On the downside, failure to hold above 22,800 could invite renewed selling pressure, dragging the index toward the 22,600-22,500 support zone," analysts noted.
Market participants turned optimistic after a decline in crude oil prices, which helped ease worries over rising input costs and inflation, leading to broad buying in frontline stocks.
Among the Nifty constituents, Tech Mahindra, ICICI Bank and Bharti Airtel emerged as the top gainers, lending significant support to the benchmark indices.
However, the broader market underperformed the headline indices. The Nifty MidCap index slipped 0.36 per cent, while the Nifty SmallCap index declined 1.31 per cent.
Sectoral performance remained mixed during the session. While the Nifty IT index led the gains amid strong buying interest in technology stocks, the Nifty PSU Bank index was the worst-performing sectoral gauge.
The Nifty Private Bank index emerged as the top gainer among sectoral indices on the NSE.
"Near-term sustainability will therefore depend on Q2 earnings delivering on revenue and margins, broader market participation and evidence of returning foreign flows, while durable stability in oil and the currency remains crucial amid geopolitical and global inflation risks," analysts noted.
Meanwhile, Rupee traded positively, gaining around 9 paise to 95.05, supported by a softer Dollar Index, stable crude oil prices and improved sentiment following a strong rally in domestic capital markets.
— IANS
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