Sensex, Nifty End At Record High In Truncated Week: Market Wrap

India's benchmark stock indices ended at a fresh record closing high in a truncated week on Thursday, led by gains in the shares of Bajaj Auto and Bharti Airtel.

The Nifty 50 ended 19.50 points, or 0.09%, higher at 22,493.55, and the Sensex gained 33.40 points, or 0.04%, to close at 74,119.39.

The Nifty hit a fresh record high of 22,525.65, and the Sensex touched an all-time high of 74,245.17 points.

As we proceed, the banking sector will likely face some challenges in the coming period, said Kushal Gandhi, technical analyst at StoxBox. "The liquidity crunch may create obstacles to credit growth. The intense deposit competition may keep the cost of income elevated."

"Equity benchmark indices edged higher after hitting a record high amid a firm trend in the US market and FII inflows," said Vinod Nair, head of research at Geojit Financial Services. "Moreover, faster than expected economic growth for the current fiscal year boosted sentiments for metal and capital goods stocks."

Shares of ITC Ltd., Tata Steel Ltd., Tata Consultancy Services Ltd., Larsen & Toubro Ltd., and Tata Motors Ltd. contributed the most to the gains.

Meanwhile, those of Reliance Industries Ltd., ICICI Bank Ltd., Mahindra & Mahindra Ltd., Axis Bank Ltd., and Kotak Mahindra Bank Ltd. dragged the indices.

On a weekly basis, Nifty PSU Bank gained the most, followed by Nifty Pharma and Nifty Energy. Nifty Media and Nifty IT fell.

The Nifty ended the week higher in its fourth consecutive weekly advance, adding 0.69%.

Broader markets outperformed benchmark indices, with the S&P BSE Midcap index ending with 0.39% gains and the S&P BSE Smallcap closing 0.70% higher on Thursday.

Market breadth was skewed in favour of the buyers. Around 2,107 stocks rose, 1,704 stocks declined, and 110 remained unchanged on BSE.