Closing Bell: Market Bounces Back, Nifty Back Above Above 20,900; IT Stocks Drag Amid FOMC Caution

The Indian stock market witnessed a recovery at the close, with Nifty 50 rebounding from lows and settling above the crucial 20,900 mark. The Sensex rose 34 points to 69,584, while Nifty gained 26 points to close at 20,932.

While the broader market saw mixed movements, the Nifty Bank dipped 5 points to 47,092, and the Midcap Index emerged as a significant gainer, soaring 391 points to finish at 44,947.

Investors remained cautious throughout the day, with IT stocks weighing on the market sentiment as they braced for the crucial Federal Open Market Committee (FOMC) decision. The uncertainty surrounding the global economic outlook kept traders on their toes.

In the midst of the market fluctuations, Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) stole the spotlight by hitting record highs, marking them as the top Midcap gainers of the day. Both stocks surged up to 9%, reflecting positive investor sentiment.

Automaker Mahindra & Mahindra (M&M) closed 2% higher after revealing plans to invest Rs 525 crore in Classic Legends. This move added a positive spin to M&M's shares, contributing to the day's overall market recovery.

On the flip side, PI Industries ended in the red, though it managed to recover from its lows after the company retained its FY24 growth guidance. Axis Bank experienced a dip of more than 1% as 3.09 crore shares changed hands via a block deal.

GMR Airports witnessed a surge of 5%, reaching multi-year highs with healthy trading volumes. Nifty Realty also hit a record high, with Prestige Estates leading the pack, closing nearly 6% higher.

India's leading airline, IndiGo, scaled to new heights intraday, ending nearly 2% higher, while positive brokerage notes fueled a 4% rise in NMDC's stock.

Market breadth favoured advances, with the NSE Advance-Decline Ratio standing at 2:1. Despite the cautious undertone, the market's resilience and positive performances in key sectors suggest optimism prevailing among investors.