Mumbai– Indian benchmark stock indices closed higher for a third consecutive session Friday, supported by gains in automobile and financial services shares, while investors booked profits in information technology stocks after a recent rally.
The Sensex rose 166.49 points, or 0.21%, to close at 78,094.64. The Nifty gained 66.45 points, or 0.27%, to settle at 24,383.60.
Bajaj Finance, Bajaj Finserv and Jio Financial Services were among the top gainers on the Nifty as buying interest remained strong in financial stocks.
The broader market also finished higher, with both the Nifty MidCap and Nifty SmallCap indices advancing 0.44%.
Automobile shares outperformed the broader market and provided significant support to the benchmark indices. Consumer goods stocks were also among the stronger performers during the session.
The Nifty IT index, however, ended its five-session winning streak as investors took profits, despite continued strength in global semiconductor stocks.
Market analysts said the positive momentum remained intact, although profit booking emerged at higher levels amid concerns over elevated bond yields and the possibility of interest rate increases.
“On the downside, the 24,300 level now acts as immediate support, followed by the 24,200 zone,” an analyst said. “Holding above these levels will be important to preserve the ongoing recovery structure, while a close below 24,200 could trigger fresh profit booking toward lower support levels.”
Analysts said the durability of the recovery would depend largely on corporate earnings and a reduction in global risks.
“The sustainability of the recovery will depend largely on the ongoing earnings season, which is currently outperforming forecasts, and on a reduction in global risks,” another analyst said.
As more companies report results, investors are expected to look for signs that the recent improvement in earnings is broad-based rather than concentrated in a few sectors. (Source: IANS)
