Metal, capital goods stocks gain on GDP jump

by IANS |

Mumbai, March 7 (IANS) The equity benchmark indices edged higher on Thursday after hitting a record high amid a firm trend in the US market and FII inflows, said Vinod Nair, Head of Research at Geojit Financial Services.

Moreover, faster-than-expected economic growth for the current fiscal boosted sentiments for metal and capital goods stocks, Nair said.

While the Nifty 50 closed 20 points, or 0.09 per cent, up at 22,493.55 on Thursday, the Sensex settled at 74,119.39, up 33 points, or 0.05 per cent. Both the indices settled at their fresh closing highs.

Tata Steel was the top gainer in the Sensex as it gained more than 3 per cent.

Meanwhile, the global indices exhibited mixed sentiments, driven by the US Fed’s signals of hope for a potential rate cut this year.

Further clarity on the US labour market, anticipated with the release of non-farm payroll data on Friday, will offer insights into potential rate adjustments, Nair said.

Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty stayed below the psychological 22,500 mark, with call writers at the 22,500 strikes significantly increasing their positions.

On the downside, support is expected to hold at 22,400. The buy-on-dips strategy is likely to persist as long as it remains above 22,400. On the upside, a decisive move above 22,500 could trigger buying interest in the market, potentially pushing the index towards 22,700 in the short term.