Sensex ends 274 points higher, Nifty reclaims 24,300; auto stocks lead rally
- Sensex rose 274 points to close at 79,843; Nifty ended at 24,312, up 82 points.
- Auto and metal sectors led the rally, with Coal India and Maruti Suzuki among top gainers.
- Late buying in the final hour of trade pushed benchmarks into positive territory.
- Markets recovered from early losses amid positive global cues and domestic buying interest.
Markets close higher after volatile session
Indian stock markets ended Thursday's session in the green, with the BSE Sensex gaining 274 points to close at 79,843. The Nifty 50 rose 82 points to finish above the 24,300 mark at 24,312.
The recovery came in the last hour of trade, after the indices spent most of the day oscillating between gains and losses. Traders attributed the late surge to short covering and fresh buying in heavyweight stocks.
Auto and metal stocks drive gains
Auto stocks were the star performers of the day. Shares of Maruti Suzuki, Mahindra & Mahindra, and Tata Motors closed with solid gains, lifting the Nifty Auto index by over 1.5 percent.
Coal India was among the top gainers on the Nifty 50, rising over 3 percent following reports of strong production numbers. The metal pack also saw buying interest, with Hindalco and Tata Steel ending higher.
What moved the market today
Positive cues from Asian markets provided a supportive backdrop. Japan's Nikkei and Hong Kong's Hang Seng traded higher, boosting sentiment for domestic equities.
On the domestic front, buying by institutional investors and a fall in crude oil prices from recent highs added to the optimism. The rupee also strengthened slightly against the US dollar during the session.
Broader indices lag but breadth improves
The broader market underperformed the benchmarks. The BSE Midcap index ended flat, while the Smallcap index slipped marginally. However, market breadth turned positive by the close, with 1,890 stocks advancing against 1,620 declining on the BSE.
Sectorally, the Nifty Auto and Nifty Metal indices were the top gainers. The Nifty Bank index closed 0.3 percent higher, aided by gains in HDFC Bank and ICICI Bank. On the other hand, IT stocks faced mild selling pressure, with Infosys and TCS ending slightly lower.
Valuation concerns persist
Despite the day's gains, analysts remain cautious about elevated valuations. The Nifty 50 now trades at over 22 times its one-year forward earnings, prompting some profit booking at higher levels.
Traders are now watching for cues from global central banks and upcoming corporate earnings for direction. The monthly derivatives expiry next week could also add to volatility.
Looking ahead, the market's ability to hold above the 24,300 level on the Nifty will be key. Any dip below this support could trigger fresh selling, while a sustained move higher may attract more buying from institutional investors.