Sensex, Nifty Extend Gains for Second Day; PSU Banks and IT Stocks Lead Rally

Mumbai, February 17: Indian benchmark equity indices closed higher for the second consecutive session on Tuesday, supported by gains in public sector banks and information technology stocks, even as global cues remained largely muted.

The 30 share Sensex ended at 83,450.96, up 173.81 points or 0.21 per cent. The broader Nifty settled at 25,725.40, rising 42.65 points or 0.17 per cent.

Nifty Faces Resistance Near 25,800 Mark​

Market participants noted that the recovery pushed the Nifty above the 25,700 level. However, upward momentum repeatedly encountered resistance in the 25,760 to 25,800 range, resulting in intermittent profit booking.

On the downside, dips towards the 25,550 to 25,600 zone attracted consistent buying interest. This range continued to act as a near term support base, preventing any sharp breakdown in the index.

ITC, Infosys, L&T Among Top Gainers​

Within the Sensex pack, ITC, Bharat Electronics, Infosys, Larsen and Toubro, Asian Paints, and Titan were among the top performers, gaining up to 2.3 per cent during the session.

On the other hand, Eternal, Trent, Tata Steel, Reliance Industries, Mahindra and Mahindra, and Bajaj Finserv were among the laggards, slipping as much as 1.5 per cent.

Broader Markets Outperform​

The broader market indices also ended in positive territory. The Nifty MidCap index advanced 0.27 per cent, while the Nifty SmallCap index rose 0.56 per cent, indicating broader participation in the rally.

Among sectoral indices, the Nifty PSU Bank index surged over 2 per cent to emerge as the top performer of the day. The Nifty IT index also closed higher, reflecting renewed buying interest in technology stocks.

However, the Nifty Metal index declined around 1 per cent, weighed down by weakness in metal counters.

IT Sector May See Rebound After Sharp Selloff​

Market observers indicated that IT stocks could witness a rebound in the coming sessions after nearly Rs 5 trillion was wiped off their combined market capitalisation so far this year.

The recent selloff in the sector has potentially made valuations more attractive, creating room for a possible recovery as selective buying returns.

Rupee Trades Rangebound; Gold Weakens​

In the currency market, the rupee traded in a narrow band near 90.68 as participants awaited a decisive move in the dollar index or fresh cues from secondary market flows.

Gold prices remained weak below Rs 1,53,500, down Rs 1,500. Internationally, CME gold slipped below $4,950, losing around $57 or 1.15 per cent, as easing geopolitical tensions reduced safe haven demand.

The market managed to sustain gains for the second straight day, supported by selective buying in banking and IT shares, even in the absence of strong global triggers.