Nifty 50 Surpasses 23,400, Sensex Bounces Back as Banking Stocks Propel Gains
On April 16, the benchmark indices Nifty 50 and Sensex recovered from earlier losses, ending the session with gains, as last-hour buying helped them bounce back from a lackluster trading day. The afternoon session saw investors picking up pace, especially in the broader markets.
Market Close
- Sensex finished up by 309.40 points, or 0.40%, at 77,044.29.
- Nifty 50 closed with a gain of 108.65 points, or 0.47%, at 23,437.20.
Despite the market’s volatility throughout the day, the market breadth favored the bulls, with 2,561 shares advancing, 1,244 shares declining, and 129 shares remaining unchanged.
Banking Sector Outperformance
IndusInd Bank was one of the top performers, driven by positive news about the bank’s derivative portfolio. An external report revealed that the bank would face a lower-than-expected hit to its net worth, only ₹1,979 crore due to discrepancies in derivatives. The bank’s evaluation showed an adverse impact of just 2.27% on its net worth.
Broader Market Strength
Investors took a bottom-fishing approach in the broader market, leading to gains in the Nifty Midcap 100 and Nifty Smallcap 100, which rose 0.5% and 1%, respectively.
Key Factors Driving the Market
The market was buoyed by a cooling consumer price inflation (CPI), which dropped to 3.34% in March. This, in turn, fueled investor optimism that the Reserve Bank of India (RBI) might cut interest rates further, benefiting banking stocks, which outperformed in the session. The Nifty Bank index saw a rise of 1.4%, reflecting the sector’s positive outlook.
Gold also surged to a lifetime high of ₹95,000 per ten grams due to a weaker dollar and ongoing global uncertainties.
Caution Advised Amidst Volatility
Despite the gains, experts urge caution. “The market is indicating calm after the storm. However, investors should not jump to conclusions about stability. More volatility and market reactions are likely,” said K Vijayakumar, Chief Investment Strategist at Geojit Investments.
Support & Resistance Levels
According to Rupak De, Senior Technical Analyst at LKP Securities, support for Nifty is at 23,300, and 23,650 will be the key resistance level. A fall below 23,300 could trigger a further correction.
