Nifty

Following a significant decline on the preceding day, the Nifty Midcap 100 and Smallcap 100 indices recovered some losses, posting gains of 1.80% and 1.70%, respectively. Advancing shares outnumbered declining shares, with the advance-decline ratio standing at 1.83 on the BSE.

Investors are eagerly awaiting the weekend release of results from key index heavyweights such as Reliance, HUL, ICICI Bank, and Kotak Bank. The outcome of these releases will likely influence market sentiments, Khemka added.

The broader market continued to face selling pressure, driven by elevated valuations and profit booking as investors consider sector rotation.

The Nifty also touched an all-time intra-day high of 22,124.15 before closing at 22,032.30, down by 0.29%. Over the last five days, the BSE benchmark surged by 2.76%, gaining 1,972.72 points, while the Nifty jumped 2.71%, adding 584.45 points. Both indices had closed at record highs on Monday.

While geopolitical developments often serve as triggers for market corrections, recent events like the Israel-Gaza war and ongoing skirmishes in the Red Sea have not significantly impacted crude prices or markets.

Mandar Bhojane, Research Analyst at Choice Broking, noted that both Sensex and Nifty reached new highs of 73,322 and 22,104, respectively, driven by a rally in IT stocks, fueled by December quarter results exceeding Street estimates.

Pranav Haridasan, MD and CEO at Axis Securities, highlighted that the recent surge in the IT sector leading the Nifty rally this month, particularly in the last two trading sessions, has been fueled by positive results and attractive valuations. However, he urged caution, noting that sharp rallies may not be sustainable.