Indian Markets Hold Firm After Early Wobble as Banks and Autos Boost Sentiment

16 Jan 2024 , 01:07 PM

Equity benchmarks extended their winning streak for a sixth straight day, clawing back early losses to trade marginally higher by noon on Tuesday. The rally was fuelled by strong performances from financials like Bajaj Finance and ICICI Bank, showcasing renewed investor confidence in the sector.

While the Sensex dipped initially, shedding over 100 points, it quickly reversed course to trade at 73,215.79, just a hair’s breadth below its record high. The Nifty followed suit, recovering from a 40-point decline to stand at 22,055.80. The broader market displayed similar resilience, with 1221 stocks advancing compared to 1995 decliners.

Financial Powerhouse:

The banking sector emerged as a key driver of the rebound, defying early jitters. Both private and public banks displayed strength, pushing the sector further into the green. This renewed optimism suggests investors are regaining confidence in the financial landscape.

Beyond Banks:

The positive sentiment spread across other sectors as well. Automobile stocks like Hero MotoCorp and Maruti Suzuki revved up, while FMCG, infrastructure, and even metals found themselves in positive territory. This broad-based rally indicates healthy underlying market strength.

Winners and Losers:

On the Nifty, Titan Company, BPCL, and ONGC led the charge among the gainers, while HCL Tech, Wipro, and LTIMindtree found themselves on the losing side. The Sensex mirrored this trend, with Titan, Maruti Suzuki, Tata Motors, and Bajaj Finance taking the top spots, while HCL Technologies, Wipro, and Tech Mahindra struggled.