Sensex gains 166 pts, Nifty closes at 24,383; Bajaj stocks lead

Indian equity benchmarks closed Thursday's session with marginal gains, as buying in select financial and auto stocks offset losses in other sectors. The BSE Sensex advanced 166 points, while the NSE Nifty rose 66 points to settle at 24,383.

The day's trading was largely range-bound, with investors treading cautiously ahead of key earnings releases and global cues. However, sustained interest in Bajaj group stocks and Mahindra & Mahindra provided the necessary support to the indices.

Bajaj stocks lead the rally

Bajaj Finance and Bajaj Finserv emerged as the top gainers on both indices, contributing significantly to the day's gains. M&M also saw strong buying interest, helping the auto and financial sectors outperform.

According to market analysts, the positive momentum in these stocks was driven by expectations of strong quarterly results and improved business outlook. The broader market, however, remained mixed, with advances and declines nearly evenly matched.

Sectoral performance mixed

While financials and autos gained, IT and pharma stocks faced selling pressure. The Nifty Bank index rose, but the Nifty IT index ended in the red.

Midcap and smallcap stocks showed resilience, though the overall sentiment was cautious. Foreign institutional investors remained net sellers, while domestic institutions provided support.

Global cues and market outlook

Asian markets ended mixed, and European indices opened on a weak note, reflecting global uncertainty. Investors are closely monitoring the US Federal Reserve's policy stance and domestic inflation data.

Oil prices remained volatile, adding to the cautious mood. Market participants are now looking ahead to the upcoming Reserve Bank of India's monetary policy meeting and corporate earnings from index heavyweights.

Analysts suggest that the market may continue to consolidate in the near term, with stock-specific action driving returns. They advise investors to focus on quality stocks with strong fundamentals.

The coming sessions will likely be influenced by global factors and domestic data releases. Market watchers will also track the progress of the monsoon and its impact on the rural economy.

As the earnings season progresses, any surprise in results could trigger sharp movements in individual stocks. For now, traders are advised to maintain a cautious approach and manage risk prudently.

Going ahead, market direction will depend on how global cues evolve and whether domestic inflows sustain. Investors will also keep an eye on the rupee's movement against the dollar and crude oil prices.