Sensex ends 99 pts higher led by FMCG stocks; Nifty tops 18,300

Defying weak global cues amid worries over the US economy and a possible default on US government debt, Indian equity markets recovered from the day's low to end higher on Thursday, led by ITC, Airtel, and Kotak Mahindra Bank.

The 30-share BSE benchmark Sensex rose 99 points or 0.16% to settle at 61,873. The broader NSE Nifty surged 36 points or 0.20% to settle at 18,321, led by fast moving consumer goods stocks.

From the Sensex pack, Bharti Airtel, ITC, and Kotak Bank were the top gainers, rising 1-3%. L&T, Power Grid, Bajaj Finance, Infosys and Nestle also closed with gains. On the other hand, Wipro, IndusInd Bank, Tata Motors, Sun Pharma, HDFC, and HUL ended with cuts.

Among individual stocks, PTC Industries ended nearly 6% higher after subsidiary Aerolloy Technologies was approved by Israel Aerospace Industries (IAI) for the supply of cast components for Aerospace applications. While shares of Trident ended over 6% lower after its Q4 profit declined 28%.

Sector-wise, Nifty Realty rose 1.12% and Nifty FMCG surged 0.61%. Nifty Auto and Nifty Consumer Durables also closed higher. In the broader market, Nifty Midcap100 gained 0.38%, and Smallcap100 rose 0.09%.

The market breadth was skewed in the favour of the bulls. About 1,877 stocks gained, 1,616 declined, and 118 remained unchanged on the BSE.

Expert Views
"Global markets maintained their influence, exerting downward pressure on the domestic market in response to weaker cues from the US market and the recession in Germany. However, as US futures rose, propelled by a sharp increase in sales projections from chipmaker Nvidia, the domestic market was able to efficiently recoup its earlier losses," said Vinod Nair, Head of Research at Geojit Financial Services.

Rupak De, Senior Technical at LKP Securities, said, "Nifty remained volatile during the day, but found support at the 18,200 level before moving higher. The RSI is in bullish crossover on the lower timeframe, which suggests that the momentum is in favour of the bulls."

"On the higher end, resistance is seen at 18500. Support is seen at 18200. Overall, the outlook for the market is positive, but there is still some volatility to be expected," Rupak added.

Global Markets
Shares were mostly lower in Asia on Thursday as worries about the US economy and a possible default on US government debt pulled Wall Street lower. Japan's benchmark Nikkei 225 index advanced 0.4%, extending recent gains as investors bet on higher returns from Japanese companies.

Hong Kong's Hang Seng sank 2% as investors fretted over the trajectory of China's economic recovery after the government relaxed pandemic restrictions late last year. The Shanghai Composite Index also fell by 0.5%.

European stocks steadied on Thursday after their worst two-day selloff since March, as investors balanced concerns over the US debt ceiling standoff and a global economic slowdown with optimism from upbeat corporate earnings.

The pan-European STOXX 600 index added 0.1% after shedding about 2.5% in the past two days, triggered by a selloff in luxury stocks and a lack of progress in talks to raise the US debt ceiling and avert a default.

Crude Oil Declines
Oil prices fell on Thursday after Russian Deputy Prime Minister Alexander Novak played down the prospect of further OPEC+ production cuts at its meeting next week. Brent crude futures was down 96 cents, or 1.23%, to $77.39 a barrel. US West Texas Intermediate crude (WTI) fell $1.04, or 1.43%, to $73.28.

Currency Watch
The Indian rupee ended lower and premiums also dropped, pressured by higher US yields, while likely dollar inflows limited the domestic currency's fall. The rupee ended down 0.1% to 82.74 versus the US dollar. The currency hit a near three-month low of 82.85 earlier in the week.

(With inputs from agencies)