Indian Stock Market Rebounds: Nifty Closes at 25,900 with Gains in Auto, IT, and Pharma

Indian Stock Market Sees Rebound

The Indian stock market bounced back after three days of losses, with the Nifty closing at 25,900. This rebound was driven by positive global cues, including a 0.25% interest rate cut by the US Federal Reserve.

Key Market Highlights

• The Sensex rose by 426.86 points (0.51%) to 84,818.13.
• The Nifty increased by 140.55 points (0.55%) to 25,898.55.
• BSE Midcap index gained 0.8%, while the smallcap index added 0.5%.

Top Gainers and Losers

Kotak Mahindra Bank, Eternal, Jio Financial, Tata Steel, and Grasim Industries were among the major gainers on the Nifty. On the other hand, Bharti Airtel, Asian Paints, SBI Life Insurance, Bajaj Finance, and Axis Bank were the top losers.

Sectoral Performance

All sectoral indices ended in the green, with auto, IT, pharma, telecom, PSU Bank, Private Bank, metal, and realty sectors rising 0.5-1%.

Stock-Specific News

• DCM Shriram shares rose 4% after signing an MoU with Bayer Crop Science.
• Shakti Pumps shares surged 12% following a major order win worth Rs 407.5 crore.
• Cipla shares gained 1.5% after launching a new diabetes drug.

Market Outlook

While the market rebound is a positive sign, it may be premature to celebrate. A sustained move above the 20-DEMA (around 25,950) is necessary to confirm further recovery. Participants should closely track the performance of banking and IT sectors, which will be crucial for market direction. Global cues, especially from the US markets, will also remain influential.

Key takeaways:

• Nifty remained firm after an initial decline in early trading hours.
• The index faces resistance at the 21EMA on the daily timeframe, indicating an underlying bearish market structure.
• In the short term, 25,700 is likely to act as support, and a decisive break below this level could give bears the upper hand.