Mumbai, May 22: Domestic equity markets closed on a positive note on Friday, with benchmark indices posting moderate gains, supported by a sharp appreciation in the Indian rupee and strong performance in banking and financial stocks.
The Sensex advanced 231.99 points, or 0.31 per cent, to settle at 75,415.35, while the Nifty rose 64.60 points, or 0.27 per cent, to close at 23,719.30. The upward movement reflected improved investor sentiment during the trading session, driven largely by currency gains and sector-specific strength.
Market participants tracked the rupee’s movement closely, as it strengthened significantly against the US dollar. The currency gained 51 paise to touch an intra-day high of 95.69 before trimming some gains to settle at 96.20 per dollar. The appreciation in the rupee provided support to equities by boosting confidence in domestic financial conditions.
Banking and financial stocks led the rally, with key gainers on the Nifty including Trent, Shriram Finance, and Axis Bank. Sectoral indices such as Nifty Private Bank, Nifty Financial Services, and Nifty Bank outperformed the broader market, indicating focused buying in these segments.
In contrast, the broader market displayed mixed trends. The Nifty MidCap index edged up by 0.14 per cent, while the Nifty SmallCap index slipped by 0.15 per cent, suggesting selective participation beyond large-cap stocks.
Sector-wise, pharmaceutical, healthcare, and media stocks ended in the red, reflecting selling pressure in these segments despite the overall positive market trend.
Analysts indicated that key technical levels remain critical for the near-term direction of the Nifty. Immediate support is seen at 23,600, with a further downside risk towards 23,400 if the index breaches this level. A sharper correction could follow if the index falls below 23,400.
On the upside, experts noted that a decisive move above 23,800 would be required to trigger a fresh upward trend in the short term. They added that the market is currently trading within a defined range, and a breakout on either side will determine the next directional move.
Market participants also highlighted that current trading patterns reflect a buy-on-dips and sell-on-rallies approach, indicating cautious optimism. Analysts pointed out that a sustained uptrend would depend on broader global factors, including geopolitical stability and softer crude oil prices, which could improve macroeconomic conditions and support foreign investor sentiment.
With corporate earnings expectations remaining subdued for the upcoming quarter, investors are likely to remain sensitive to both domestic and global cues in the near term.
