Indian indices closed higher on Wednesday, with gains in defence stocks and robust growth in the services sector providing support. The Sensex surged by 110.58 points to end at 80,956.33, while the Nifty rose marginally by 2.35 points, settling at 24,461.25. Despite these gains, market breadth was negative, as 19 Nifty companies recorded advances while 31 declined.
In the Nifty index, HDFC Life, HDFC Bank, NTPC, Apollo Hospital, and Bajaj Finserv were among the top gainers. Meanwhile, Bharti Airtel, Cipla, Bajaj Auto, Adani Ports, and Tata Motors led the decliners, reflecting a mixed performance across sectors.
Defence stocks saw significant traction following the Defence Acquisition Council’s (DAC) approval of acquisition proposals worth ₹21,772 crore. Mazagon Dock Shipbuilders and Garden Reach Shipbuilders surged nearly 5%, while Bharat Electronics, Hindustan Aeronautics, and Bharat Dynamics posted gains of 2-3%.
VLA Ambala, Co-Founder of Stock Market Today, said that the DAC’s approval strengthened the portfolios of defence companies, sparking strong buying interest. “This highlights the growing prominence of the defence sector in the market,” Ambala said.
India’s services sector continued its expansion in November, driven by strong domestic and international demand. The sector witnessed record hiring and improved business sentiment, despite facing the sharpest price hikes in a decade. This growth bolstered overall market optimism and provided additional support to the indices.
Ambala also analyzed technical trends, pointing out that the Nifty tested the 24,500 level and formed a “Doji candlestick pattern” on the daily chart. This pattern is often seen as a signal for a favorable outlook in the mid-to-long term. Ambala suggested that investors focus on accumulating quality mid-cap and small-cap stocks for potential gains.
(ANI)
