Stock Market Highlights: Nifty, Sensex Surge For Second Day In A Row; Nifty IT Best Performer

Indian equity benchmark indices closed higher for the second day in a row, as Shriram Finance Ltd., Bharat Electronics Ltd. and Tata Motors Ltd. among others led gains.

The NSE Nifty 50 ended 205.85 points, or 0.90% up at 23,163.10, and the 30-stock BSE Sensex ended 653.95 points, or 0.86% higher at 76,555.36.

The NSE Nifty Bank also closed higher at 49,165.95. The index ended 0.61% up at 49,165.95.

"After a long duration, bulls have shown their power right from the word-go. The index was seen compounding its gains which was well supported by the strong performance of mid and smallcap stocks. Nifty 50 settled the trade at 23,163.10 with gains of 205.85 points," said Aditya Gaggar, director of Progressive Shares.

Except for FMCG, all the other sectors ended in the green territory where realty and IT emerged as top performers. The positive divergence in the RSI worked well and at present, the index stands on the brink of a Falling Wedge formation breakout. This could drive the Nifty further up to 23,550, if the breakout occurs between 23,200-23,250, according to Gaggar.

The immediate resistance and support are positioned at 23,270 and 23,000 respectively, he added.

Shares of Infosys Ltd., Tata Consultancy Services Ltd., Tata Motors Ltd., Mahindra & Mahindra Ltd., Kotak Mahindra Bank Ltd. contributed positively to changes in the Nifty 50.

While those of Bharti Airtel Ltd., ITC Ltd., Maruti Suzuki India Ltd., Axis Bank Ltd. and Asian Paints Ltd. negatively contributed to the change.

Eleven of the 12 sectors ended in green, with Nifty Realty, IT, Media, Energy, Metal, Pharma, Auto and Finance gaining the most.

Nifty FMCG was the only sector that saw a decline.

Broader markets outperformed benchmark indices. The BSE Midcap and Smallcap indices ended 2.54% and 3.28% higher, respectively.

On BSE, 20 sectors advanced and one declined out of 21. The BSE Industrial rose the most, while the BSE FMCG emerged as the worst performing sectoral index.

Market breadth was skewed in the favour of buyers. Around 2,981 stocks advanced, 1,005 stocks declined, and 96 stocks remained unchanged on BSE.