Indian markets maintained their winning streak for the third consecutive trading day on Thursday as strong support from heavyweight stocks such as Reliance Industries, HDFC Bank, and Bharti Airtel kept the momentum going.
Additionally, the stock comeback from real estate and pharma sectors also supported the markets in staying higher, while IT stocks saw some profit booking following a healthy rally in recent sessions.
The Nifty ended the session with a gain of 0.37% at 23,249, while the Sensex closed at 76,759, marking a 0.30% increase from the previous close. The Nifty Smallcap 100 index rose 0.12% to 16,560, while the Nifty Midcap 100 index concluded the day with a gain of 1.08%, closing at 54,483.
PSU stocks have emerged as top performers, with the Nifty PSE index ending the session with a gain of nearly 2%. Eighteen out of 20 constituents of the index ended the session in the green, with IRFC emerging as the top gainer, up by 4.6%, followed by Bharat Electronics and Power Finance, which gained 4.3% and 3.7%, respectively.
Analysts expect that the continued rally in the market will depend on the upcoming Budget, with expectations that the government will likely remain focused on capital spending while giving some impetus to the revival of consumption. To achieve this, there is growing talk of providing income tax relief for salaried taxpayer.
Commenting on today's market performance, Vinod Nair of Geojit Financial Services said, "The Indian markets concluded on a positive note despite fluctuating between gains and losses. The fall in oil prices due to a rise in US inventories and ease in US 10-year yield after the US Fed's hawkish view may decelerate FIIs outflow."
"The upcoming budget may be seen as an inflection point, which is likely to reverse the current bearish trend if the policies restore growth and consumption. As the long-term story is intact, investors are focusing on stocks and sectors where operational metrics and valuations are favourable," he added.
(By arrangement with livemint.com)