Stock market today: Nifty 50, Sensex close higher for 2nd day ahead of US CPI data; realty stocks shine | Stock Market News

Indian Stock Market: Indian markets managed to end higher for the second consecutive trading session on Wednesday, January 15, as heavyweights such as Reliance Industries, State Bank of India, and Kotak Mahindra Bank supported the frontline indices. Mid- and small-cap stocks also witnessed healthy buying interest from investors for the second day after being battered during the previous week.

The Nifty 50 ended the session with a gain of 0.16% at 23,213, while the Sensex closed at 76,724, marking a 0.29% increase from the previous close.

The Nifty Smallcap 100 index rose by 0.56% to 17,353, while the Nifty Midcap 100 index concluded the day with a gain of 0.41%, closing at 53,899. The sustainability of this rally will depend on the US Consumer Price Index (CPI) numbers, which are scheduled to be released today.

Investors will be closely watching these figures, as they will provide more clarity on the US Federal Reserve’s rate cut trajectory following the strong US jobs data last week, which dashed market expectations of multiple rate cuts this year.

Data on Tuesday showed that US producer prices rose moderately in December. Meanwhile, as President-elect Donald Trump is set to begin his second term next week, investors are anxious about his vow to impose tariffs on a wide range of imports, fearing these could fuel inflation and further limit the Fed’s ability to lower rates.

Concerns over the uptick in inflation and a strong spike in the US Dollar have been prompting overseas investors to pull funds from emerging markets such as India. In the previous trading session, FPIs sold ₹8,132 crore worth of Indian stocks through exchanges. This was the biggest single-day withdrawal from FPIs since November 28, when they pulled out ₹11,756 crore.

Commenting on today’s market performance Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market continues to be volatile on account of elevated US bond yields, a strengthening dollar, and increasing FIIs outflows. Global markets are cautious ahead of the US December CPI inflation data, which is anticipated to be in the elevated range in the short term, limiting the Fed’s ability to cut rates. Also, a rise in oil prices & dollar appreciation is likely to affect domestic inflation in the near future.”

Sectoral Performance: Nifty Realty shines; media stocks lags

Among sectoral indices, Nifty Realty emerged as the top performer with a rally of 1.39%. Eight out of the 10 constituents of the index ended in positive territory, with Phoenix Mills emerging as the top gainer, rising 5.5%. It was followed by Raymond, Mahindra Lifespace, Brigade Enterprises, DLF, and Oberoi Realty, all ending the session with gains between 1.5% and 4.6%.

Despite today’s pullback, the index is still down by 12.50% so far this month and 20% from its June 2024 high.

Apart from realty stocks, IT stocks also ended higher, with the Nifty IT index closing at 43,401, 0.79% higher than the previous close. Other sectoral indices, Nifty Energy and Nifty Consumer Durables, ended with gains of 0.76% and 0.5%, respectively.

On the flip side, Nifty Media emerged as the worst-performing sectoral index in today’s session, losing 1.36%, followed by Nifty Pharma, Nifty Auto, and Nifty FMCG, which ended with losses of 1.04%, 0.53%, and 0.14%, respectively.

Nifty 50: Key levels and trends

Rupak De, Senior Technical Analyst at LKP Securities, said, “Another day of choppy trades was witnessed as the market lacked direction. However, sentiment is likely to favour a recovery in the short term, with the potential to reach 23,400 on the higher end. The sentiment is expected to remain positive as long as the market stays above 23,000. A buy-on-dips strategy appears to work well in the current scenario.”

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, noted, “Technically, on the daily chart, Nifty 50 formed a small red candle, indicating uncertainty, with resistance around the 23,270-23,300 zone and support at 23,047. A break above 23,300 could push the index to 23,500, while sustaining below 23,047 may lead to 22,900-22,800.”

“However, the index is still placed below the 23,550 hurdle, where the 250-Days Simple Moving Average (250-DSMA) is located. As long as Nifty maintains below 23,550 levels, traders are advised to follow a sell-on-rise strategy,” Hrishikesh Yedve added.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.