Nifty, Sensex Rise For Second Day As RIL, Infosys Share Prices Lead: Market Wrap

The NSE Nifty 50 and BSE Sensex extended gains to the second day as Reliance Industries Ltd. and Infosys Ltd. share prices led. The benchmark indices recovered at the later part of the session.

The Nifty 50 ended 142.90 points, or 0.59% higher at 24,274.00, and the Sensex ended 445.29 points, or 0.56% up at 80,248.08.

Earlier in the day, the Nifty 50 declined 0.51% to 24,008.65, and the Sensex fell 0.62% to 79,743.87.

The benchmark indices declined as the Indian currency slumped to fresh record low against the US dollar. Worries over India's GDP and US President–elect Donald Trump threatened to impose tariff on BRICS nations if they create a currency to replace the greenback.

However, as the session advanced, the Nifty 50 rose as much as 0.71% to 24,273.80, and the Sensex rose 0.67% to 80,337.82.

"FIIs continued their selling in the cash market on Friday and the domestic macroeconomic data suggested weaker than expected GDP print that could prove a bit worrisome for the equities in the medium term. December quarterly earnings will be watched closely to determine the broader trend of Indian equities and till then, we are most likely to consolidate with limited upside," IFA Global Research said.

D-street commenced the December month on a tepid note, but the Auto and Pharma segments along with select heavyweights supported the Index to recover from the lower levels, noted Aditya Gaggar, director, Progressive Share Brokers Pvt.

"With a bullish candle on the daily chart, the index is approaching the neckline (24,350) of an Inverted Head & Shoulder formation. Tomorrow's trade will provide better clarity on the potential pattern breakout. The immediate resistance is 24,350, while the downside is protected at 24,100," Gaggar said.

Shares of Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., UltraTech Cement Ltd., and Mahindra & Mahindra Ltd. positively contributed to changes in the Nifty 50.

While those of NTPC Ltd., HDFC Life Insurance Co., Hindustan Unilever Ltd., Kotak Mahindra Bank Ltd., and Cipla Ltd. weighed the index.

On NSE, 10 out of 12 sectors ended higher, and two declined. The NSE Nifty Realty rose the most, and the NSE Nifty PSU Bank declined the most.

Broader indices outperformed. BSE Midcap ended 1% higher and BSE Smallcap closed 0.9% up.

Three of the 21 sectoral indices on BSE ended lower and 18 rose. BSE Realty rose the most.

Market breadth was skewed in the favour of buyers. As many as 2,509 advanced, 1,546 declined, and 182 remained unchanged on the BSE.