On September 17, 2024, both the Sensex and Nifty extended their gains for a second consecutive day, fueled by strong performances in the auto, telecom, and construction sectors. The market momentum built up ahead of the US Federal Reserve's anticipated 25-basis-point interest rate cut. The Sensex closed at 83,068 points, up by 80 points or 0.1%, while the Nifty added 34 points to close at 25,418.50.
Market breadth was mixed, with 1,616 stocks advancing, 2,176 declining, and 99 remaining unchanged. While large-cap stocks saw a buying trend, the BSE Midcap and Smallcap indices dipped by up to 0.1%. India VIX, a key indicator of market volatility, edged up by 1% to close at 12.6.
Key Movers
- Top Gainer: Hero Motocorp surged by 3.14% to ₹5,961.20.
- Top Loser: Tata Motors fell by 1.36%, closing at ₹974.95.
- Best Sector: Nifty Infra rose by 0.34%.
- Worst Sector: Nifty PSU Bank dropped by 0.58%.
Expert Views
Vinod Nair, Head of Research at Geojit Financial Services, remarked that market sentiment was positive due to expectations of an easing rate cycle by the US Fed. Although a 25-basis-point cut is anticipated, investors remain focused on the Fed's guidance on future rate cuts. The market's uptrend was also supported by continued institutional flows and buying interest in sectors such as IT, FMCG, and private banking.
Ajit Mishra, SVP of Research at Religare Broking, noted that while the broader market remained subdued, realty and auto stocks saw gains. Profit booking in midcap and smallcap segments contributed to weaker overall market breadth.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, commented that the market's range-bound activity reflected consolidation. He emphasized that as long as the Nifty trades above 25,350, the bullish trend is likely to continue, with the possibility of moving higher towards 25,550-25,650.
Outlook
Experts recommend a "buy on dips" strategy, as selective sectors such as banking, financials, realty, and IT offer attractive stock-specific opportunities. However, market participants remain cautious ahead of the US Fed's monetary policy announcement.
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