Sensex, Nifty hit 52-week high ahead of Diwali

Mumbai, Oct 17 (IANS) Indian stock markets ended higher on Friday, extending gains for the third straight session ahead of Diwali.

Both Sensex and Nifty touched 52-week highs during the session, fueled by buying in financial, automotive, and FMCG stocks.

At closing, the Sensex rose 484.53 points (0.58%) to settle at 83,952.19, while the Nifty gained 124.55 points (0.49%) to reach 25,709.85.

Market analysts noted: “Nifty displays technical strength for continued upward movement, with a ‘buy on dips’ approach likely to prove effective in the near term.”

“Key support appears at 25,500, while resistance levels remain near 25,850-26,000,” they added.

Broader markets showed divergence as the Nifty MidCap 100 declined 0.57% and the Nifty SmallCap 100 edged down 0.05%.

Sectorally, Nifty FMCG outperformed with 1.37% growth. Auto, Banking, Financial Services, Pharma, Realty, and Consumer Durables sectors also closed positively.

Meanwhile, IT and Media stocks emerged as notable underperformers.

Major Sensex gainers included Asian Paints, Mahindra & Mahindra, Bharti Airtel, ITC, Hindustan Unilever, and ICICI Bank.

Markets concluded the week strongly with both Nifty and Bank Nifty surpassing critical psychological resistance thresholds.

Domestic sentiment remained resilient despite mixed global signals, supported by consistent institutional investments and widespread buying activity.

“Nifty’s upward momentum persists as the index breaks through its four-month consolidation pattern,” market experts observed.

Large-cap stocks outpaced mid- and small-cap counterparts, reflecting early bull market characteristics where established companies typically lead advances.

Meanwhile, gold extended its rally with significant gains of Rs 1,700 (1.30%), reaching Rs 1,31,500. Market uncertainty from the ongoing US government shutdown and a weakening dollar index below 99 bolstered safe-haven demand.

The delayed release of US economic data continues to drive defensive positioning among investors.

“With bullish momentum intact, gold prices may sustain elevated levels amid persistent risk aversion. Immediate support lies near Rs 1,28,000, with resistance anticipated around Rs 1,33,000,” analysts concluded.