Nifty hits 1-month high on broad-based gains, NBFCs & FMCG lead

The stock market ended sharply higher on Wednesday, with benchmark indices climbing to one-month highs amid broad-based buying across sectors. The Nifty 50 index surpassed its recent peak to close just shy of the 25,325 mark, while the Sensex advanced more than 575 points, supported by gains in financials, FMCG, and realty stocks.

The blue-chip NSE Nifty 50 rose 178 points, or 0.71%, to end at 25,324.55, crossing its previous high of 25,331 intraday. The S&P BSE Sensex climbed 575.29 points, or 0.70%,

to finish at 82,605.46.

Market breadth was decisively positive, with nearly 40 of the 50 Nifty constituents ending in the green. The NSE advance-decline ratio stood at a robust 2:1, indicating widespread investor optimism across the board.

Non-banking financial companies (NBFCs) led the charge in the financial space. Shares of Bajaj Finance and Cholamandalam Investment and Finance gained between 3% and 4% amid firm sentiment in the sector. The Nifty Bank index climbed 304 points to close at 56,800, while the Midcap index surged 646 points to end at 58,970.

In the broader financial segment, HDFC Asset Management Co. extended gains following its recent 1:1 bonus issue and strong quarterly results. Shares rose further, building on post-bonus momentum.

Insurance stocks saw mixed reactions. ICICI Prudential Life Insurance declined after posting quarterly results that fell short of street expectations, while HDFC Life Insurance edged higher in the run-up to its earnings.

Fast-moving consumer goods (FMCG) stocks saw renewed buying interest ahead of upcoming earnings announcements. Nestle India gained over 4%, marking one of the day’s top Nifty performers, amid expectations of strong volume-led growth.

The overall sector outlook has improved as input cost pressures ease and volume recovery continues, analysts noted.

Information technology shares were mixed. Infosys fell ahead of its earnings release later this week, reflecting cautious investor sentiment. Tech Mahindra, meanwhile, ended off intraday lows after releasing quarterly results that were broadly in line with expectations.

Mid-cap IT player Persistent Systems jumped over 9% after the company reported strong second-quarter results. Similarly, ICICI Lombard General Insurance surged 7% on robust earnings and improved operating metrics.

The Nifty Realty index advanced 3% following favorable inflation data that raised expectations of sustained demand in the real estate space. Realty stocks have been among the top sectoral gainers in recent weeks amid improving macro trends.

Public sector banks gained ground on reports of consolidation within the sector. The PSU Bank index rose nearly 2%, extending recent gains on expectations of continued reforms and improved asset quality.

On the flip side, auto stocks underperformed. Bajaj Auto and Maruti Suzuki shed earlier gains to close around 2% below their intraday highs, reflecting profit-taking pressure. The broader Nifty Auto index lagged the benchmarks.

Shares of Vodafone Idea rebounded 5%, recouping losses from Wednesday amid speculative buying. Paytm rose nearly 3% after the company announced a simplification of its business structure, aimed at improving operational efficiency and transparency.

Gold-loan financiers were in focus as global gold prices stabilized. Players in the segment gained modestly, riding on improved sentiment in bullion.

Among mid-caps, Urban Company soared 10% as its shareholder lock-in period ends Tuesday, prompting increased investor interest in the newly listed stock.

On the downside, Keystone Realtors slumped 7% after its promoter initiated an offer-for-sale (OFS) at a 10% discount to the current market price, raising concerns over supply overhang.