Closing Bell: Bulls Take Back Charge, Sensex & Nifty End 1% Higher Led By Reliance, HDFC Bank, Infosys

The Indian stock market witnessed a robust recovery on the weekly expiry day, ending the session at day's highs and marking significant gains across indices. The market's resilience was evident as it closed at nearly two-week highs, with the Nifty reclaiming the 22,400 mark.

BSE-listed companies saw their market capitalization soar to unprecedented levels, registering an increase of Rs 3 lakh crore in a single trading session. The bullish sentiment firmly favored advances, with the advance-decline ratio maintaining a balanced 1:1 ratio, showcasing the broad-based strength of the market.

Key contributors to this upward trajectory included heavyweight stocks such as HDFC Bank, Infosys, Bharti Airtel, M&M, and Reliance Industries, which played a pivotal role in propelling the indices higher.

Most sectoral indices witnessed positive closures, reflecting the widespread optimism among investors. Meanwhile, the volatility index slipped by 2%, indicating a reduction in market uncertainty and a growing confidence in the stability of the current uptrend.

Stocks reacted sharply to earnings reports, with companies like Mahindra & Mahindra, Hindustan Aeronautics, and Honeywell Automation emerging as top gainers following their string financial performances. HAL, in particular, reported a significant beat, with margin soaring to 40%, propelling the stock to an 11% surge.

Oberoi Realty's positive commentary buoyed investor sentiment, driving the stock to a gain of 9%, while LIC witnessed double-digit growth in disbursements for FY25, leading to a 3% uptick in its stock price.

While the majority of sectors basked in the glow of positive sentiment, certain sectors experienced mixed fortunes. IT stocks saw a surge in buying activity, fueled by better-than-expected US CPI data, with the Nifty IT index recording a solid 2% gain. Conversely, Maruti and Tata Motors ended the session in the red, facing a decline of 2% each.

Apollo Tyres, despite experiencing fluctuations, ended the session in the green following brokerage upgrades, while PVR Inox recovered from Wednesday's losses to close with gains of 3% each. The upward momentum extended to capital goods stocks, with ABB witnessing another 3% rise

The Indian stock market followed the positive trajectory set by key Asian markets, driven by optimism surrounding potential rate cuts by the Federal Reserve. This sentiment was bolstered by softer April inflation figures in the US.

In April, the US consumer price index (CPI) recorded a sequential increase of 0.3%. Year-on-year (YoY), the CPI saw a rise of 3.4%, slightly lower than the 3.5% uptick observed in March.

The modest increase in inflation figures, which fell below expectations, has sparked optimism regarding potential rate cuts by the US Federal Reserve in the latter part of this year.

Japan's Nikkei surged by 1.37%, while Korea's KOSPI experienced a notable increase of 0.82%. Hang Seng in Hong Kong also saw significant gains, rising by 1.56%.

In contrast, major European markets showed subdued performance. France's CAC 40 declined by over half a percent, while the UK's FTSE and Germany's DAX each dropped by 0.30% at the time of the Sensex's closing.

As the market closed on a high note, investors are optimistic about the trajectory of the Indian stock market. With strong earnings performances, positive commentary from key players, and bullish trends across sectors, the outlook remains upbeat, signaling a potential continuation of the current upward momentum in the days to come.