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Mid-day Mood | Nifty, Sensex off highs but still in green; auto, pharma stocks boost momentum
Mid-day Mood | Nifty, Sensex off highs but still in green; auto, pharma stocks boost momentum
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Benchmark indices Nifty and Sensex held steady in positive territory, though gains were trimmed as a dip in bank stocks weighed on the indices. However, strength in auto, pharma, and FMCG stocks kept the market in the green. As the year draws to a close, trading volumes remain thin as investors now look forward to the new year.At noon, the Sensex was up 263.06 points or 0.34 percent at 78,735.54, and the Nifty was up 83.80 points or 0.35 percent at 23,834.00. About 1720 shares advanced, 1645 shares declined, and 101 shares unchanged.Follow our LIVE blog for all the latest market updates"Meanwhile, short-term bumps on the economic growth path will cause corrections and market volatility like what we are witnessing now. The strongest headwind for the market now is the FII selling triggered by strong dollar (dollar index staying above 108) and attractive US bond yields with the 10-year yielding 4.35 percent," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. "A change in FII strategy from selling to buying will happen when macros indicate recovery in growth and corporate earnings," he added.In the afternoon session, Nifty Auto emerged as the top performer, climbing 1.6 percent, driven by gains in a four-wheeler and two-wheeler stocks. The rally followed DAM Capital's upgrades on several auto stocks, citing recovery prospects despite near-term headwinds. Tata Motors, Escorts Kubota, and Bajaj Auto were all upgraded to "buy," with Bajaj Auto's target set at Rs 9,750. Nifty Pharma also advanced 1 percent, led by heavyweights like Dr Reddy's, Sun Pharma, Cipla, and Lupin. Meanwhile, Nifty Bank and FMCG indices posted modest gains of 0.5 percent each.Also read: Budget 2025 may propose simplified tax regime for foreign semiconductor firms to boost manufacturing in IndiaOn the downside, Nifty Realty was the biggest drag, slipping 0.6 percent, followed by declines in the metal and consumer durable indices.The broader market displayed heightened volatility, oscillating between red and the green. While the midcap index traded, the smallcap index rose 0.2 percent. A host of market experts say that action in the broader market is largely stock-specific and investors should exercise caution and choose stocks that have earnings visibility and attractive valuations. The midcap 100 and smallcap 100 indices have fallen just 5 percent in the las...