Sensex and Nifty close higher as confidence across the world improves; RIL shares drop 1.5%

While benchmark stock market indexes had a good close to the trading day, a decline in Reliance Industries Limited (RIL) shares had offset some of the gains.

At the closing bell, the NSE Nifty50 closed 31.60 points higher at 22,368 and the S&P BSE Sensex was up 89.83 points at 73,738.45.

Amidst improving risk emotions, volatility rapidly decreased, leading to a substantial increase in the wider market indexes as well.

“With Iran-Israel tensions taking a backseat, the benchmarks at Dalal Street continued their winning streak for third day in a row, led by a strong upsurge in telecom stocks, but markets pared most of their early gains due to profit-taking in late trades,” stated Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

“The positive development is that the India VIX has dropped by a further 18.90% to 10.30 points. Since F&O contracts for April expire on Thursday and traders would want to roll over their holdings to the following expiry day, volatility is expected to take center stage,” he said.

Gains were seen in the majority of the main sectors indexes, including Nifty IT, Nifty Bank, and Nifty Financial Services. Conversely, Nifty Oil & Gas, Nifty Pharma, and Nifty Metal all dropped.

On the Nifty50, Grasim, Bharti Airtel, Nestle India, Maruti, and Tata Motors were the top five gainers. Conversely, Sun Pharma, BPCL, Reliance, Dr. Reddy’s, and Hindalco were the biggest losers.

Choice Broking’s Mandrar Bhojane, a research analyst, stated: “The Nifty opened the trading day with a gap up amid initial volatility.” A bearish candle formed on the daily chart throughout the day as the index moved sideways between the levels of 22,350 and 22,440, signifying profit booking and price stability.

The 22,300 and 22,200 levels provided strong support for the Nifty, while the 22,500 and 22,600 levels presented immediate resistance, according to Bhojane.

“The Chemical and Railway sectors gained impetus throughout the trade day by breaking through their congestion zones. The fact that mid- and small-cap stocks increased by more than 1% and outperformed the Frontline Index suggests that investors have more interest in larger markets,” he said.