Closing Bell: Market Builds On Previous Gains; Sensex & Nifty Surge, Rs 8 Lakh Crore Market Cap Added

The Indian stock market staged a robust recovery on Thursday, with major indices posting significant gains. The Nifty, in particular, regained the crucial 22,800 level, driven by a surge in midcap stocks and positive sentiment across various sectors. The market breadth overwhelmingly favoured advances, with the advance-decline ratio standing at an impressive 7:1.

At the close, the Sensex soared by 692 points to reach 75,075, while the Nifty surged 201 points to settle at 22,821. The Nifty Bank index added 237 points to reach 49,292, and the Midcap index outshone, rising by a notable 1,147 points to hit 52,414. Notably, the midcap segment outperformed the frontline indices, showcasing the market's resilience and broad-based recovery.

The realty sector emerged as the day's top gainer, posting gains of over 4.50%, closely followed by the media and PSU banks. Conversely, FMCG and pharma stocks lagged behind, facing profit booking after recent gains. The technology sector, buoyed by strong performances in the Nasdaq, led by Tech Mahindra and HCL Tech, emerged as one of the top gainers.

Aditya Gaggar, Director of Progressive Shares, highlighted the market's oscillation between bullish and bearish sentiments, noting the formation of a Spinning Top candlestick pattern on the Nifty50. He indicated key support levels at 22,485, with immediate resistance at 23,080-23,130, underscoring the cautious optimism prevailing among investors.

FMCG giants witnessed profit booking, with Hindustan Unilever (HUL) witnessing a 2% decline. Conversely, Aditya Birla Group stocks, including AB Capital and AB Fashion, registered significant gains. Biocon emerged as the top midcap gainer, surging by 10% on fresh buying interest. PSU stocks continued their upward trajectory, with BHEL, HAL, GAIL, REC, and CONCOR among the top gainers.

Market participants are awaiting the Reserve Bank of India's Monetary Policy Committee (MPC) outcome on June 7. While the consensus expects the central bank to maintain the status quo on rates and policy stance, Governor Shaktikanta Das' commentary on growth and inflation remains pivotal for investor sentiment.

The BSE-listed companies collectively added approximately Rs 8 lakh crore in market capitalization, pushing the total market cap to nearly Rs 416.3 lakh crore. Over 100 stocks, including Bajaj Auto, TVS Motor Company, and United Spirits, hit fresh 52-week highs, reflecting renewed investor confidence and optimism in the market.

Except for sectors like FMCG, pharma, healthcare, and private banks, which saw marginal declines, all other sectoral indices closed with gains. Nifty Realty emerged as the top performer, surging by 4.69%, followed by media, PSU banks, IT, and oil & gas sectors.

Among Nifty 50 stocks, Tech Mahindra, HCL Tech, and Shriram Finance led the gainers' pack, while Hindalco, Hero MotoCorp, and Hindustan Unilever ended as the top losers.

Thursday's market performance showcased a resilient recovery, with the Nifty reclaiming the 22,800 mark and midcap stocks leading the charge. Despite initial volatility driven by fluctuations in banking stocks, the market demonstrated strength across various sectors, buoyed by positive global cues and anticipation of favourable domestic policies. As investors brace for the RBI MPC's decision, the overall sentiment remains cautiously optimistic, underpinned by robust market breadth and encouraging sectoral performances.