Sensex, Nifty up second day, auto stocks lead rally

The domestic share market indices, the Sensex and Nifty extended their winning streak to the second day, closing at record highs on Tuesday,driven by strong buying in telecom, auto, and construction stocks. Investors' optimism was fueled by expectations of a 25 basis point rate cut from the upcoming US Federal Reserve monetary policy decision.
At close, the Sensex was up 90.88 points or 0.11 percent to 83,079.66, and the Nifty was up 34.80 points or 0.14 percent , settling at 25,418.55. Market breadth was negative, with 1,616 stocks advancing, 2,176 declining, and 99 remaining unchanged.In the broader end of the markets - BSE Midcap and BSE Smallcap indices declined up to 0.1 percent, while India VIX, which measures market volatility ticked up by a percent to settle at 12.6.
M&M, NTPC, Bharti Airtel, Bajaj Auto, and Hero MotoCorp were the top gainers on the Nifty which gained 1-3 percent. Meanwhile, Tata Steel, Coal India, Adani Ports, Eicher Motors, and Tata Motors lagged, each falling by a percent.
On the sectoral front, Nifty realty led the gains rising 0.6%, followed by Nifty consumer durables,and Nifty auto which were up by 0.5% and 0.3% respectively.On the losing side Nifty media was the biggest laggard dropping 1.2%,with Nifty PSU and Nifty Metal also down by 0.6% and 0.4% respectively.In broader markets, BSE Midcap and Smallcap indices remained flat, underperforming the benchmarks.
 Rupee Close:
On 17 Sep'24,the Indian rupee appreciated by 11 paise to settle at 83.75  against the US dollar on Tuesday amid a weaker greenback against major currencies and a decline in crude oil prices.The decline in wholesale inflation to a four-month-low and a strong domestic market pushed up the domestic unit, forex traders reportedly stated.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying,the Indian market exhibited a subtle positive momentum, driven by the anticipation of a rate cut cycle by the US FED. Although a 25-bps cut is largely factored in, the market remains attuned to the FED's comments on the health of the economy and the future trajectory of rate cuts. Further, robust institutional flows continued to bolster the domestic market. While the overall trend remained positive, there was notable buying interest in large-cap stocks, particularly in sectors such as IT, FMCG, and private banks.
Market experts have recommended five stocks to buy for today-  Fortis Healthcare Ltd, Blue Star Ltd, Intellect Design Arena Ltd. Reliance Industries Ltd, Coromandel International Ltd.

(Writer is a Finance Research Analyst, based in Gandhinagar, Gujarat)