Sensex rises 374 points on Reliance, ICICI Bank buying; Nifty flat

Mumbai: The benchmark Sensex climbed 374 points on Thursday, propelled by strong buying in index heavyweights Reliance Industries and ICICI Bank, even as the Nifty ended flat in a session marked by selective stock action.

The 30-share BSE Sensex closed at a fresh intraday high, while the broader NSE Nifty struggled for direction, settling nearly unchanged as gains in some sectors were offset by losses in others.

Reliance and ICICI lead the charge

Reliance Industries and ICICI Bank were the primary drivers of the Sensex's upward move, contributing significantly to the index's gains. Traders attributed the buying to fresh institutional interest in these large-cap names, though no specific trigger was immediately cited.

Other gainers included select private banks and energy stocks, which helped the Sensex outperform the Nifty. The divergence between the two indices highlighted the narrow nature of the rally, with a handful of stocks accounting for most of the upward movement.

Mixed sectoral trends

On the sectoral front, buying was visible in oil & gas, banking, and metal stocks, while IT and pharma shares witnessed profit-taking, capping the Nifty's gains. The market breadth remained slightly negative, with more stocks declining than advancing on the BSE, indicating that the rally was not broad-based.

Market participants said the flat close of the Nifty reflected caution ahead of upcoming economic data and global cues. Investors appeared to be booking profits in recently rallied midcap and smallcap stocks, while rotating funds into large-cap names.

What analysts are watching

Analysts noted that the market has been in a consolidation phase, with the Sensex and Nifty moving within a range over the past few sessions. The lack of any major domestic or global trigger has kept volumes moderate, and traders are awaiting clarity on interest rate trajectories and corporate earnings for direction.

Foreign institutional investors have been net buyers in recent sessions, though their activity has been uneven. Domestic institutional buying has provided a floor to the market, but sustained upside momentum will depend on earnings delivery and global sentiment, according to market observers.

The rupee traded in a narrow band against the dollar, reflecting the mixed risk appetite. Meanwhile, global peers were mostly steady, with Asian markets showing a cautious tone and European indices opening on a soft note.

Outlook

With the Nifty ending flat, the immediate support for the index is seen around recent lows, while the Sensex's strength suggests resilience in select large caps. Market participants will now keep an eye on the next batch of quarterly earnings from blue-chip companies and any policy signals from global central banks.

The coming sessions are likely to be data-driven, with investors watching inflation numbers and industrial production figures due later this month. A clear breakout above recent highs or a decisive fall below support levels could set the tone for the next leg of the market.