Sensex rises 378 pts as Bank & IT stocks rally, Nifty above 24,650

The domestic share market indices ended on a strong note on Tuesday, following the upward trend of their Asian counterparts. The gains were supported by increasing metals demand from China and optimism that the U.S. Federal Reserve might begin lowering interest rates soon.At close,the Sensex was up 378.18 points or 0.47 percent at 80,802.86, and the Nifty was up 126.20 points or 0.51 percent at 24,698.85.
Amid positive global cues, the market opened higher with Nifty around 24,650 and extended the gains as the day progress, however, last hour selling erased some of the intraday gains.Analysts note that Nifty's short-term trend remains positive. Positioned near the critical resistance of 24,700, Nifty might experience consolidation or a slight dip in the next 1-2 sessions before potentially breaking higher. Monday's session concluded with Nifty gaining 31.5 points, forming a small red candle on the daily chart, reflecting some hesitation after Friday's strong breakout.
SBI Life Insurance, HDFC Life, Bajaj Finserv, Shriram Finance and IndusInd Bank were the top gainers on the Nifty, while losers included ONGC, Bharti Airtel, Adani Enterprises, Cipla and Apollo Hospitals.
On the sectoral front except FMCG, all other sectoral indices ended in the green with bank, healthcare, IT, metal, power up 0.5-1 percent.The BSE midcap index rose 1 percent while smallcap index added 0.5 percent.
Rupee Close:
On 20th Aug'24,the Indian rupee The Indian rupee stayed firm for the second straight session and settled 8 paise higher at 83.79 against the US dollar on Tuesday, buoyed by positive domestic equity markets, weak American currency and lower crude oil prices.Forex traders reportedly stated, foreign fund outflow, however, resisted a sharp rise in the local unit.
Meanwhile,in contrast to the broader rally in emerging Asian currencies, the rupee is lagging, with central bank interventions likely dampening its rise. The currency has edged lower against the dollar, even as the Indonesian rupiah and Malaysian ringgit have climbed more than 4% in August, according to information. This is a significant turnaround for the rupee, which had been a top performer in the region during the first half of 2024, second only to the Hong Kong dollar.
Trading Guide:
The domestic market started the session with a strong surge, buoyed by positive global sentiment amidst Israel-Hamas ceasefire talks and diminishing US recession fears due to recent favourable data. Concurrently, easing geopolitical risks and weak China demand have led to a decline in crude prices, benefiting the domestic economy. Meanwhile, inflationary pressure in Japan and the appreciating Yen cautioned the rally. This week’s Japan inflation data and FOMC minutes will provide insights into future interest rate trajectories and market trends,Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying.

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