Indian markets close: Sensex, Nifty log sixth straight gain; Banks, FMCG lead despite muted session

India’s benchmark equity indices, the Nifty 50 and Sensex, continued their upward march for a sixth consecutive session on Tuesday, April 22, though the day’s gains were notably more subdued compared to the robust advances seen earlier in the winning streak.

Underlying market sentiment remained positive, however, driven by sector-specific catalysts and continued buying interest in the broader market.

Sixth day gains, but momentum moderates

While extending the rally, the headline indices traded within a relatively narrow range for much of the session.

At the closing bell, the BSE Sensex settled at 79,595.59, up 187.09 points or 0.24 per cent.

The NSE Nifty 50 finished at 24,167.25, adding 41.70 points or 0.17 per cent.

Despite these modest benchmark increases, the overall market health appeared robust.

Market breadth strongly favoured advancing stocks, with about 2,389 shares gaining on the BSE compared to 1,453 declining shares, and 137 remaining unchanged.

Broader market strength persists

The true strength of the session was evident beyond the large-cap benchmarks.

Mid-cap and small-cap stocks continued to attract significant investor interest, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices climbing a healthy 0.8 per cent each.

This suggested investors were actively seeking opportunities among stocks perceived as having lagged in the recent rally.

This trend aligns with expert observations.

“Indian markets are expected to remain largely unperturbed by the issues in US markets and continue to see strong buying interest, particularly in smaller stocks,” noted Devarsh Vakil, Head of Prime Research at HDFC Securities, highlighting the resilience of domestic sentiment despite potentially jittery global cues.

Banks buoyed by softer RBI norms

The banking sector was a key pocket of strength during the session.

The Nifty Bank index posted solid gains following the Reserve Bank of India’s release of final guidelines concerning the Liquidity Coverage Ratio (LCR).

Market participants perceived these final norms as considerably less stringent than the earlier draft proposals.

According to the RBI’s assessment, the finalized guidelines are expected to result in “600 bps improvement in LCR at the aggregate level for the banking sector,” a potentially significant positive for bank liquidity management.

FMCG shines on upgrade, recovery hopes

Another standout performer was the Fast-Moving Consumer Goods (FMCG) sector.

The Nifty FMCG index surged nearly two percent, shining brightly throughout the day.

This buoyancy was largely attributed to a positive reassessment of the sector by Switzerland-based brokerage UBS.

In a research note, UBS adopted a constructive stance, upgrading several FMCG companies based on expectations that the current financial year will usher in a much-anticipated broad-based recovery for the consumer staples space.

From a technical perspective, the Nifty 50 has staged an impressive rally, gaining over 2,400 points from its recent swing low of 21,743 recorded just eight trading sessions ago.

Market experts suggest that the index’s previous swing high around 23,870 is now likely to act as a key support level. On the upside, immediate resistance levels are eyed near 24,226 and potentially 24,546.

Key stock movements: IndusInd slips, HDFC hits milestone

Amidst the generally positive market, some individual stocks saw significant action.

Shares of IndusInd Bank faced selling pressure, dropping as much as 6 per cent during the day.

This followed reports suggesting the bank’s board had appointed Ernst & Young (EY) to conduct a second forensic audit, reportedly focusing on a Rs 600 crore discrepancy related to accrued interest income within its microfinance loan portfolio.
In contrast, HDFC Bank achieved a significant milestone.

The banking giant’s stock propelled its market capitalization past the Rs 15 lakh crore mark, making it only the third Indian company ever to reach this valuation, following Reliance Industries and Tata Consultancy Services.

HDFC Bank shares have been performing well since the lender announced its March quarter financial results.

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