Closing Bell: Market Ends With Gains For The 2nd Straight Day, Sensex & Nifty Rise; IT Stocks Lead

Indian equity market ended Wednesday, January 15, on a positive note, marking the second straight day of gains. Major indices, including the Sensex and Nifty 50, closed higher, supported by heavyweights such as Reliance Industries, State Bank of India (SBI), and Kotak Mahindra Bank. A surge in power and IT stocks also contributed to the market's uptick, despite pressure on select sectors.

The Sensex gained 224 points or 0.29%, closing at 76,724, while the Nifty 50 rose 37 points or 0.16%, ending the session at 23,213. In the broader market, the Nifty Midcap 100 climbed 223 points or 0.41% to 53,899, and the Nifty Smallcap 100 advanced 0.56% to 17,353.

Despite these gains, market sentiment remains cautious, particularly in the mid and smallcap segments. Persistent underperformance due to weak fundamentals and limited institutional buying has dampened investor confidence, leaving retail and high-net-worth individuals (HNIs) hesitant.

Among the sectoral indices, Nifty IT, Energy, Realty, and Infrastructure led the rally, gaining up to 1.1%. The IT index rebounded after two consecutive days of losses, as investors shrugged off HCL Tech's lackluster Q3 earnings. On the flip side, Nifty Pharma, Auto, and FMCG faced headwinds, declining by as much as 1.2%.

The FMCG index extended its losing streak to a fourth day, weighed down by declines in stocks like HUL, Nestle India, and Varun Beverages.

Power stocks were among the session's top performers, with Power Grid, NTPC, and Coal India leading the Nifty 50 gainers, rising up to 4%. The rally followed data from the Ministry of New and Renewable Energy, which reported record-high renewable energy generation in 2024.

Other notable gainers in the power segment included Adani Green Energy, Tata Power, JSW Energy, and NHPC, which saw gains of 1-3%. Expectations of increased budgetary allocations for renewable energy further bolstered sentiment in the sector.

Persistent Systems shares jumped 4% after launching ContractAssIst, an AI-powered contract management solution developed in partnership with Microsoft. Premier Energies rose 3% on news that its subsidiaries secured orders worth Rs 1,460 crore for solar PV cells and modules. Trent emerged as the top Nifty gainer, up 4%, following a positive note from Elara Securities.

Adani Green Energy surged over 3% after a robust Q3FY25 business update. Minda Corporation gained 5% on acquiring a 49% stake in Flash Electronics for Rs 1,372 crore. Devyani International shares soared 10% after Macquarie issued a positive outlook on its restaurant business. Dixon Technologies closed nearly 4% higher after Emkay initiated a buy call on the stock.

Other key gainers included NTPC, Power Grid Corp, Kotak Mahindra Bank, and Maruti Suzuki, which rose nearly 2% on positive brokerage updates.

While the broader market showed strength, some stocks faced selling pressure. Major Nifty laggards included M&M, Axis Bank, Bajaj Finance, Bajaj Finserv, and Shriram Finance.

The market breadth favoured advances, with an advance-decline ratio of 5:4. Midcap and smallcap indices, which were up over 1% in the morning, pared gains later in the session due to lingering concerns about weak balance sheets and limited institutional participation.

With the Sensex and Nifty managing to close in the green despite a rangebound session, investors appear cautiously optimistic. Sectors like power and IT are expected to remain in focus, driven by robust fundamentals and favourable policy expectations.