Stock Market Today: Nifty and Sensex closed in the positive territory

India’s Nifty and Sensex closed higher after a subdued start on Tuesday.
Nifty and Sensex cheered the upswing in IT and auto sector stocks.
Tuesday’s US Durable Goods data eyed ahead of US PCE inflation, India’s Q3 GDP data.

The Sensex 30 and Nifty 50, India’s key benchmark indices, witnessed a Tuesday turnaround and settled in the green zone, reversing Monday’s nearly 0.50% decline.

Asian markets rebounded after opening lower, lending support to the Indian indices.

Indian traders, however, remained jittery ahead of India’s third-quarter Gross Domestic Product (GDP) data and the expiry of monthly derivatives contracts due later this week. Also, of note remains the top-tier US economic news, including the Durable Goods Orders data due later on Tuesday.

The National Stock Exchange (NSE) Nifty 50 and the Bombay Stock Exchange (BSE) Sensex 30 gained roughly 0.35% on the day to close at 22,193.80 and 73,066.91 respectively.

Stock market news

The rebound in the auto and IT sector stocks aided the recovery in Nifty and Sensex. US stock futures flipped to gains, at the press time.
The top performers on Nifty were TCS, Tata Motors, Powergrid, IndusInd Bank and Sunpharma. Meanwhile, the main losers included Divislab, SBI Bank, Bajaj FinServ, Bajaj Finance and Heromoto Corp.
Key corporate news: Tata Consultancy Services (TCS) jumped 2.5% after UBS upgraded the stock to "buy".
The National Company Law Tribunal (NCLT) approved the Hinduja Group firm's resolution plan for Reliance Capital.
Paytm’s founder and chief executive officer Vijay Shekhar Sharma quit the payments bank board in a major shakeup. Paytm share price dips after rallying 5%.
Union Bank of India raised 30 billion rupees, under QIP, at an issue price of 135.65 rupees.
Wipro Company announced a joint 5G private wireless solution with Nokia to help enterprises scale their digital transformation.
On Monday, Nifty and Sensex bore the brunt of the sharp declines in the metal and pharma sector stocks.
The US stock markets closed in the red on Monday.
Last week, Nifty and Sensex traders took account of the mixed Indian and US preliminary business PMI data and hawkish Minutes of the Reserve Bank of India (RBI) February meeting.
Data published by HSBC Bank showed on Thursday that India’s Manufacturing Purchasing Managers’ (PMI) Index dropped from 56.9 in January to 56.7 in February. Meanwhile, the Services PMI rose to 62.0 in the same period vs. 61.8 previous. The Composite PMI stood at 61.5, as against the previous reading of 61.2.
In the RBI Minutes, Governor Shaktikanta Das stated that ‘’at this juncture, monetary policy must remain vigilant and not assume that our job on the inflation front is over. We must remain committed to successfully navigating the ‘last mile’ of disinflation which can be sticky.”
S&P Global Manufacturing PMI improved to 51.5 from 50.7 in February, while S&P Global Services PMI edged lower to 51.3 from 52.5.
Attention now turns toward the US Durable Goods Orders, PCE inflation data and India’s Gross Domestic Product (GDP) data.
Markets are currently pricing in just about a 20% chance that the US Federal Reserve (Fed) could begin easing rates in May, much lower than an over 90% chance a month ago, according to the CME FedWatch Tool. For the June meeting, the probability for a rate cut now stands at about 60%, down from 70% seen a few days ago.

Nifty 50 FAQs

What is the Nifty 50?

The Nifty 50, or simply Nifty, is the most commonly followed stock index in India. It was launched in 1996 by the National Stock Exchange of India (NSE). It plots the weighted average share price of 50 of the largest Indian corporations, offering investors comprehensive exposure to 13 sectors of the economy. Each corporation's weighting is based on its “free-float capitalization”, or the value of all its shares readily available for trading.

What factors drive the Nifty 50?

The Nifty is a composite so its value is dependent on the performance of the companies that make up the index, as revealed in their quarterly and annual results. Another factor is government policies, such as when in 2016 the government decided to demonetize 500 and 1000 Rupee banknotes. This led to a temporary cash shortage which negatively impacted the Nifty. The level of interest rates set by the Reserve Bank of India is a further factor as it determines the cost of borrowing. Climate change, pandemics and natural disasters are also drivers.

What are the key milestones for the Nifty 50?

The Nifty 50 was launched on April 22, 1996 at a base level of 1,000. Its highest recorded level to date is 22,097 achieved on January 15, 2024 (this is being written in Feb 2024). The index first closed above the 10,000 level on October 17, 2017. The Nifty recorded its biggest daily decline on March 23, 2020 during the Covid pandemic, when it fell 1,125 points or 12.37%. The Nifty’s biggest gain in a single day occurred on May 18, 2009, when it rose 651 points after the results of the Indian elections.

What are some of the major companies in the Nifty 50?

Major corporations in the Nifty 50 include HDFC Bank, Reliance Industries, ICICI Bank, Tata Consultancy Services, Larsen and Toubro, ITC Ltd, Housing Development Finance Corporation Ltd and Kotak Mahendra Bank.

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