A major upheaval was seen in the domestic stock market on Nifty weekly expiry. The market started with a decline, but after the initial weakness the market sentiment improved. The IT index rose 2.5% on the day due to a strong rally in IT stocks. It closed with a gain of about 1%. The PSU Bank index closed with a gain of over 2%.
Midcap and smallcap indices remained strong, while the IT sector recovered after four days of decline. Strong buying was also seen in PSU bank stocks, which provided support to the market. Nifty Mid Select closed at 13664 with a gain of 22 points or 0.17%, while Nifty Smallcap closed at 17146 with a gain of 95 points or 0.56%.
After four consecutive days of weakness, a tremendous recovery was seen in the IT sector. Positive signals regarding AI and digital services brought back investor confidence. Newgen Software registered the highest gain of about 15%. Meanwhile, Infosys rose 2.3%, while Oracle Financial Services Software rose 1.7% and HCLTech rose 1.4%. This shows that value buying has resumed after the decline in the IT sector.
Sector strengthened by buying in PSU bank shares
Strong buying was seen in PSU bank shares today. Investor interest increased, especially in stocks like Bank of Baroda, Punjab National Bank, Indian Bank and Union Bank of India. Better asset quality and expectations of strong credit growth have maintained positive sentiment in the sector.
ITC, Adani Enterprises, BEL and L&T shine in Nifty 50
Today, FMCG, Defense and Infrastructure stocks in Nifty 50 supported the market. ITC, Adani Enterprises, Bharat Electronics and Larsen & Toubro were the biggest gainers. Buying in these stocks helped stabilize the market. On the other hand, weakness was seen in some heavyweight stocks. Shares like Reliance Industries, Hindalco Industries, Tata Steel and Trent declined, limiting the market’s gains. Nifty closed at 25,725, up 43 points. Sensex closed at 83,451, up 174 points. Bank Nifty closed at 61,174, up 225 points. In the currency market, the rupee weakened by 2 paise and closed at 90.67/$. Infosys has partnered with Anthropic, after which buying was seen in IT stocks. Infosys shares rose 3%. Newgen Tech rose +14.5%, Sasken Tech +5.8%, Sonata Soft +5.2% and Mastec rose +4.5%.
