Nifty, Sensex End Higher As HDFC Bank, PSU Bank, Oil & Gas Lead: Market Wrap

India's benchmark equity indices ended higher for the third consecutive day on Thursday, led by gains in HDFC Bank Ltd. and Mahindra & Mahindra Ltd.

Advances in the sectors of the public sector banks, oil & gas, and energy also supported the indices to recoup intraday losses.

The NSE Nifty 50 settled 70.70 points, or 0.32%, higher at 21,910.75, while the S&P BSE Sensex gained 227.55 points, or 0.32%, to end at 72,050.38. The Sensex also reclaimed the 72,000 level for the first time since Feb. 7.

During the day, the Nifty fell as much as 0.21% to 21,794.80, and the Sensex dropped 0.25% to 71,644.44.

The Nifty exhibited volatility throughout the day but eventually closed above the resistance level of 21,850, according to Rupak De, senior technical analyst at LKP Securities Ltd.

According to the daily chart, the Nifty has experienced a consolidation breakout, indicating a positive shift in sentiment, De said. "In the short term, there is a possibility of the index moving towards 22,200. On the downside, support is situated at 21,750."

The Bank Nifty bulls maintained their strong dominance as the index closed above the 46,000 mark, according to Kunal Shah, senior technical and derivative analyst at LKP Securities.

The immediate resistance for the index is situated at the 46,600–46,800 zone, and a successful breach above this level could pave the way for an upside towards the 48,000 mark. The lower-end support has shifted to the 45,800 mark, serving as a crucial cushion for the bulls in the current scenario, Shah said.

HDFC Bank, Mahindra & Mahindra Ltd., State Bank of India, NTPC Ltd. and Power Grid Corp. led the gains in the Nifty 50.

Reliance Industries Ltd., Axis Bank Ltd., ITC Ltd., ICICI Bank Ltd. and Hindustan Unilever Ltd. weighed on the index.

Nine out of the 12 sectors on the NSE gained, with the Nifty PSU Bank index rising over 3% and hitting an all-time high. The Nifty Energy and Oil & Gas indices also touched a record high.

The broader markets outperformed the larger peers, with the BSE MidCap ending with 0.93% gains and the SmallCap closing 1.24% higher on Thursday.

Eighteen out of the 20 sectors on BSE Ltd. advanced.

The market breadth was skewed in favour of the buyers as 2,353 stocks rose, 1,505 declined and 80 remained unchanged on the BSE.