Sensex closed at 74,151, up over 900 points on Thursday, as the Nifty settled at 22,936.75. The rally came on the monthly derivatives expiry day, fueled by a firmer rupee and the US Federal Reserve's decision to hold its benchmark interest rate at 3.75%-4%.
The move wasn’t just a headline play. Buying pressure spread well beyond the large-cap heavyweights, pulling mid-cap and small-cap stocks into the rally. Realty, fast-moving consumer goods (FMCG), and select banking stocks led the charge. The Nifty broke above its critical 20-day exponential moving average (20-DEMA) at 22,825, a technical hurdle traders watched closely during the morning lull.
Ajit Mishra, senior vice-president of research at Religare Broking, noted the broader market breadth. “Markets staged a strong rebound... gaining over 1% amid favourable cues and improved investor sentiment,” he said. The stronger rupee helped ease import costs, particularly for crude oil, which India relies heavily on. Brent crude prices eased slightly to around $114-$115 per barrel, though West Asia supply risks keep a lid on further relief.
The Fed’s steady hand on rates eased fears of immediate borrowing cost hikes, boosting global risk appetite. However, Mishra cautioned that the recovery needs follow-through. “Sustained buying across sectors will be essential to establish a more durable recovery,” he added. The Nifty now eyes the 23,100-23,300 zone, with support at 22,500-22,700 if momentum stalls.
Investors will watch the next few sessions for confirmation. If buying persists, the Nifty could test higher technical levels. A pullback below 22,200-22,400 would signal weakness. For now, the mood is cautiously optimistic, but the crude oil price tag remains a heavy anchor on the broader market narrative.