Sensex, Nifty 50 rise for 6th day in a row amid buying in FMCG, bank stocks. Will this rally sustain?

Stock market today: Indian stock market continued to roar for the sixth straight session on Tuesday, April 22, despite a weak handover from Wall Street, as strong gains in financials and autos and a stellar rebound in FMCG stocks helped benchmark indices close the session in the green.

Metal stocks also lent support to the benchmarks after the government imposed a 12% provisional safeguard duty for 200 days on five categories of steel products. Realty stocks, on the other hand, surged up to 6%, driven by improving liquidity conditions.

Broader markets extended their outperformance over frontline indices, with both mid- and small-cap stocks continuing to rally as sentiment in the Indian stock market improved, driven by strong domestic cues.

The Nifty 50 ended the trading session with a gain of 0.17%, settling at 24,167 points, while the Sensex concluded the trade with a rally of 0.24%, at 79,595. Meanwhile, the Nifty Midcap 100 gained another 0.8% to settle at 54,397 points, while its peer, the Nifty Small Cap 100 index, finished the trade at 16,896 points, 0.73% higher than the previous close.

Indian benchmark indices have gained 9% in the last nine trading sessions, driven by optimism over easing inflation, ongoing trade talks with the US and the return of Foreign Portfolio Investor (FPI) inflows.

Among other asset classes, gold continued to shine brightly as spot prices touched a new record high of $3,490 per troy ounce, driven by a continued surge in safe-haven demand amid rising tensions between the USA and China and concerns over a potential slowdown in the American economy. These factors have put severe pressure on the US Dollar Index, helping gold maintain its global appeal.

In the previous trading, US benchmark indices crashed over 2% after President Trump reiterated his criticism of Fed Chair Jerome Powell, even suggesting the possibility of removing him. These remarks have raised concerns about the politicisation of US monetary policy, potentially undermining the Fed’s credibility and eroding investor confidence in the economy.

Sectoral Watch: Realty stocks shine; IT resumes losing run

Nifty Realty emerged as the top sectoral gainer in today's session, April 22, as the index ended with a gain of 2.42%, extending its winning run to the sixth straight session. This was followed by Nifty FMCG, which bounced back with a gain of nearly 2%, along with Nifty Consumer Durables, Nifty PSU Bank, Nifty Pharma, and Nifty Auto — all ending the session with gains between 0.41% and 1.50%.

Nifty Bank index touched another record high of 55,961 points after the Reserve Bank of India (RBI) issued the final guidelines on the liquidity Coverage Ratio (LCR) with more lenient rules than initially proposed.

In a huge relief to the banking system, the banking regulator allowed commercial banks to set aside a lower stock of liquid assets against deposits raised through digital channels, in the event of a potential run on banks.

"On the flip side, Nifty IT ended its 3-day winning run as it tumbled 0.57%, emerging as the top sectoral laggard. Nifty Oil and Gas also concluded the session with a minor cut of 0.04%.

Commenting on the today's market performance, Vinod Nair, Head of Research, Geojit Investments Limited, said, "Despite negative global cues related to Trump-Fed tensions, the national market has maintained its optimism. The RBI's relaxed liquidity coverage ratio guidelines, which are anticipated to enhance credit growth, boosted the finance sector. Foreign inflows have remained consistent for the fourth consecutive day, driven by a weakening dollar and competitive valuations."

“Additionally, domestic macroeconomic conditions are improving, with declining inflation and rising expectations of further rate cuts by the RBI, which are likely to lower costs and stimulate demand. These factors are expected to support corporate earnings in FY26,” he further added. 

Can Nifty sustain its gains above 24,000? Key levels to watch

Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty remained mostly range-bound as the index closed with a small-bodied, indecisive candle. Although the index stayed above the 200DMA throughout the day, the rise remained limited. Going forward, the trend continues to look optimistic, at least as long as it does not fall decisively below 24,000. On the higher side, the short-term bullish outlook remains intact, with the possibility of a move towards 24,500. On the lower side, support is placed at 24,000; a break below this level could trigger a minor pullback."

However, Ajit Mishra – SVP, Research, Religare Broking, believes a pause after a strong uptrend is normal. “While strong domestic fundamentals continue to provide support, underperformance in the US markets is capping the upside momentum. With the Nifty having reached its immediate target of 24,250, some consolidation in the index is likely,” Mishra added. 

He believes that the overall tone remains positive, advising traders to maintain a "buy on dips" approach in the index and focus on stocks showing momentum, particularly those driven by earnings announcements.

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.