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Key Points

Indian stock markets concluded the week on a strong note with the Sensex surging 769 points, driven by gains in IT, FMCG, and banking stocks. Positive domestic macroeconomic indicators and potential RBI dividend expectations fueled investor optimism. The Nifty Midcap and Smallcap indices also demonstrated robust performance, reflecting broad-based market strength. Analysts remain hopeful about the market's short-term trajectory, particularly if the Nifty crosses the 25,000 mark.

Key Points: Sensex Jumps 769 Points on Strong Macro Indicators

  • Sensex rises 0.95% to 81,721 with broad-based gains across sectors
  • Nifty Midcap and Smallcap indices show positive momentum
  • RBI dividend expectations boost market sentiment
  • US-India trade talks provide additional market support
2 min read

Stock markets rally nearly 1 pc amid strong domestic macroeconomic indicators

Indian stock markets rally driven by IT, FMCG, and banking stocks amid positive economic sentiment and potential RBI dividend

"Investor attention is revolving around US-India trade talks and strong domestic macroeconomic indicators - Vinod Nair, Geojit Investments"

Mumbai, May 23

Indian stock markets ended the week on a strong note, with key benchmark indices closing higher on Friday, supported by gains in IT, FMCG, banking and financial stocks.

The Sensex jumped 769.09 points, or 0.95 per cent, to close at 81,721.08. During the day, the index moved between an intra-day high of 81,905.17 and a low of 80,897.00.

Similarly, the Nifty rose by 243.45 points, or 0.99 per cent, to settle at 24,853.15.

"The index has moved higher after finding support at the 21-day EMA. Broadly speaking, the Nifty appears to be consolidating within the range of 24,700–25,000,” Rupak De of LKP Securities said.

The short-term trend remains positive, with momentum likely to strengthen above 25,000, he added.

The domestic market has recouped nearly half of the week’s losses, supported by gains in FMCG and IT stocks. Optimism around a potentially record-high dividend from the RBI is also boosting hopes for fiscal consolidation, said experts.

In the broader markets, both the Nifty Midcap100 and Nifty Smallcap100 posted gains. The midcap index rose by 0.64 per cent, while the smallcap index was up by 0.80 per cent -- reflecting positive sentiment across the board.

On the Sensex, only one stock -- Sun Pharma -- closed in the red. Sun Pharma declined by 2.14 per cent. Sun Pharma's Q4 results showed a decline in net profit.

The remaining stocks ended the session with gains. Leading the rally were shares of Eternal, Power Grid, ITC, Bajaj Finserv, and Nestle India, which rose in the range of 3.6 per cent to 1.83 per cent.

On the sectoral front, Nifty FMCG and Nifty Private Bank led the gains, rising by 1.63 per cent and 1.08 per cent, respectively.

Other sectors such as IT, financial services, metal, PSU bank, oil and gas, and realty also closed in the green, with gains of up to 0.95 per cent.

Meanwhile, Nifty Pharma and Healthcare were the only two sectors that ended in the red.

Nifty Pharma slipped by 0.41 per cent, while the Healthcare index saw a marginal decline of just 0.01 per cent.

According to analysts, market sentiment was buoyed by optimism over US-India trade negotiations.

"Investor attention is further revolving around US-India trade talks and strong domestic macroeconomic indicators," said Vinod Nair, Head of Research, Geojit Investments Ltd.

- IANS

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Reader Comments

R
Rahul K.
Great to see markets recovering! This rally shows the resilience of Indian economy despite global uncertainties. FMCG and IT leading the charge makes sense - these are our strong sectors. Hope this momentum continues 🤞
P
Priya M.
As a small investor, I'm happy but also cautious. Markets going up is good, but I wish there was more stability. Last week's losses were scary. Experts say we might touch 25,000 soon - fingers crossed!
A
Amit S.
The RBI dividend news is really boosting confidence. Shows our central bank is managing things well. But I'm concerned about pharma stocks underperforming - Sun Pharma's results were disappointing. Healthcare sector needs attention.
S
Sneha P.
Good to see broad-based growth across sectors! But I wonder how much is real economic strength vs speculation. The US-India trade talks angle is interesting - hope we get favorable terms that benefit our manufacturing sector too.
V
Vikram J.
Power Grid and ITC performing well is no surprise - solid companies with good fundamentals. But new investors should be careful chasing midcap and smallcap rallies. Remember what happened earlier this year! Do your research before investing.
N
Neha T.
The market movement is exciting but I wish there was more focus on making stock markets accessible to common people. Many Indians still see it as gambling rather than investment. Financial literacy is key for long-term growth 🇮🇳

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