Domestic equities rebounded strongly, snapping a three-day losing streak as broad-based buying lifted market sentiment. According to Fortune India, the Nifty 50 advanced 194.75 points, or 0.81%, to close at 24,092.70, while the Sensex rose 639.42 points, or 0.83%, to settle at 77,303.63. The recovery was led by pharma, IT, auto and metal stocks, which drove the benchmarks higher. The volatility gauge India VIX ended at 18.38, down by 6.74% from the last closing, indicating improved comfort among market participants. However, market updates throughout the day showed some moderation in gains as selling pressure in select financial stocks capped the upside.
Market strategist Rohit Srivastava from Indiacharts.com believes the current recovery represents an early-stage trend reversal from downtrend to uptrend, though with challenges ahead. As reported by Mint, Srivastava noted that while the market may have begun a move toward record levels, a fall below 24,300 could signal short-term weakness and open downside trading opportunities. He emphasized that this is a constructive phase for gradual stock accumulation, with the large-cap bear phase likely ending in March. The expert suggests that while the after-effects of the war—including supply disruptions and inflation—will need to be managed, policy support should improve investor confidence significantly.
The broader market showed positive momentum with out of the 4,556 stocks that traded on the BSE on April 27, 2,303 stocks witnessed advances, 1,345 saw declines while 188 stocks remained unchanged. According to Fortune India, the Nifty MidCap index climbed 1.47% while the Nifty SmallCap index gained 1.90%, indicating strong participation beyond large-cap stocks. Sectorally, the rally remained broad-based with pharma, consumer durables, realty, media and IT stocks leading gains in the range of 2-3%. Among the most active stocks in terms of turnover were ONGC (₹572 crore), Billionbrains Garage Ventures (Groww, ₹564 crore), IIFL Capital Services (₹546 crore), Reliance Industries (₹523 crore), and Sun Pharmaceuticals (₹500 crore). On the BSE Sensex pack, 23 out of 30 stocks ended in positive terrain, led by Sun Pharma which rallied over 7% after announcing an $11.75 billion acquisition of Organon.
Sun Pharma emerged as the top gainer, rallying over 7% after the drug major announced its $11.75 billion acquisition of Organon, enhancing its global footprint in women's health and biosimilars. According to Fortune India, Reliance Industries surged 2.88% after investors reacted positively to its March quarter earnings reports. Among other major gainers, Adani Ports and Special Economic Zone, Tech Mahindra, Mahindra & Mahindra, NTPC, HCLTech and Tata Consultancy Services advanced over 2% each. On the downside, Axis Bank was the top loser, declining 3.05%, followed by Bharat Electronics (-2.00%), Trent (-0.90%) and ICICI Bank (-0.85%).
Rupak De, Senior Technical Analyst at LKP Securities, noted that the index found resistance at the 38.20% Fibonacci retracement level of the previous fall. As reported by The Economic Times, De stated that "Going forward, the index might continue to face resistance at 24,115–24,150. A decisive move above 24,150 is required to witness a sustained rally towards higher levels. On the lower end, support is placed at 24,000, below which weakness might increase." Rajesh Bhosale, Technical Analyst at Angle One, observed that prices continue to hold above the key short-term moving average of the 20 DEMA and the 38.2% retracement of the recent rally from the lows near 22,200, indicating underlying strength. According to Religare Broking, the Nifty has reclaimed its short-term moving average (20-DEMA) near 23,950, with sustaining above this level potentially paving the way for a gradual move towards the 24,600–24,800 zone.
Bank Nifty had been a laggard earlier, particularly in the private banking space, but Rohit Srivastava from Indiacharts.com notes that banking and financial stocks have outperformed the Nifty over the past few weeks. As reported by Mint, this trend suggests improving macro conditions with strength in banking stocks indicating potential economic turnaround. The expert projects Bank Nifty could reach 60,000 or beyond in the coming weeks, though a pullback towards 55,700 or slightly lower cannot be ruled out. Regarding the IT sector, Srivastava maintains a cautious stance, stating that long-term investors have largely avoided IT for several years due to subdued earnings growth compared to the broader market. He notes that over a 10-year period, the Nifty has outperformed the IT index, with earnings growth in large-cap IT companies remaining weak.
