Nifty, Sensex close with marginal gains in volatile session

Mumbai, May 2 (IANS) The domestic indices posted moderate gains on Thursday in line with global trends.

While the Nifty settled at 22,648.20, up 43 points, or 0.19 per cent, the Sensex closed with a gain of 128 points, or 0.17 per cent, at 74,611.11 on Thursday.

Neeraj Sharma, AVP, Technical and Derivatives Research, Asit C. Mehta Investment Intermediates, said the domestic benchmark indices rose modestly on Thursday as the US Federal Reserve left interest rates unchanged.

Meanwhile, record GST collections in April along with general economic stability strengthened investor confidence. Moreover, the Volatility Index, India VIX, surged by 4.46 per cent ahead of the next phase of general elections scheduled on May 7.

Vinod Nair, Head of Research, Geojit Financial Services, said the benchmark indices saw moderate gains, mirroring global trends after the US Fed decided to maintain its interest rate, as widely accepted. The US central bank hinted at potential rate cuts while remaining cautious about sustaining the high inflation trend.

The broader market largely traded range-bound, while positive commentary from the auto companies on recent volume numbers led the sector to outperform, he said.

Rupak De, Senior Technical Analyst, LKP Securities, said the Nifty closed marginally higher after a volatile trading session.

“On the hourly chart, it formed a lower peak, indicating a decrease in bullish sentiment. The momentum indicator has crossed into bearish territory, suggesting weak momentum. In the short term, the trend may continue sideways with a potential to fluctuate within the range of 22,500-22,800," De said.