Following a record-breaking six-day run, the local equity indexes, the Sensex and Nifty 50, paused on September 27 with flat openings. The largest laggards were the banking and FMCG sectors, while IT and metals stocks led the gains.
The Nifty was up 10 points, or 0.04 percent, at 26,226 at 9.16 AM, while the Sensex was up 20 points, or 0.02 percent, at 85,856. A total of 1,577 shares increased, 661 shares decreased, and 130 shares stayed the same.
"Frontline businesses are still doing well thanks to significant inflows from both DIIs and international investors. But during the previous week, the mid-cap index has declined, suggesting some market breadth dispersion. We could witness market consolidation within the coming week", stated Kranthi Bathini, Director of WealthMills Securities Pvt Ltd's equity strategy.
"With sustained FII participation, we expect HDFC Bank and other private banks to outperform," Nuvama stated. According to Nuvama's most recent rollover research report, the brokerage also anticipates strong performance from metals and a few chosen IT firms and a decline in FMCG stocks.
Because of the improvement in the macroeconomic situation and the recent interest rate drop by the US Federal Reserve, Accenture, a Nasdaq-listed supplier of IT services, upped its annual revenue growth prediction for 2025 to 3-6 percent. This caused Nifty IT to rise by about 2 percent. Accenture is a well-known reference point for Indian IT firms, providing projections about their future success.
Hindalco, Vedanta, and Tata Steel's advances drove the Nifty Metal's increase of more than one percent. The metal index had a gain for the sixth session with this. Since China revealed its stimulus program for its faltering economy, metal stocks have been rising.
The BSE Smallcap index increased by 0.4 percent, while the BSE Midcap index marginally up by 0.2 percent on the overall market.
The Nifty 50 saw a surge in IT equities, with HCLTech, LTIMindtree, Wipro, Tech Mahindra, and Infosys all seeing gains of 2-4 percent. The largest losers on the downside were ONGC, Bharti Airtel, L&T, and Power Grid, which all saw drops of one to three percent.
The majority of Asia-Pacific markets saw gains today, with Chinese equities continuing to rise as a result of Beijing's stimulus initiatives. All three of the main US indices saw gains, with the S&P 500 setting a new high on encouraging economic data. In the US, weekly unemployment claims decreased more than anticipated, pointing to a stable labor market, while Q2 GDP growth of 3% was reaffirmed.
