Sensex, Nifty end higher as PSU banks, pharma stocks support gains

Stock market ended Monday's session marginally higher after a volatile trading day, with the Sensex and Nifty managing to hold on to gains despite weakness in information technology and metal stocks. Buying in PSU banks, pharma and select financial stocks helped support the benchmarks, while profit booking capped the upside after last week's sharp rally.The Sensex rose 107.25 points, or 0.13%, to close at 81,106.65. The Nifty gained 58.25 points, or 0.23%, to settle at 25,044.65.The Sensex had opened at 81,327.29 and touched an intraday high of 81,339.41 before slipping to a low of 80,519.31. The Nifty opened at 25,076.40 and moved between a high of 25,084.05 and a low of 24,838.75 during the session.PSU BANKS LEAD SECTORAL GAINSBuying in banking stocks, particularly public sector lenders, helped the market stay in positive territory. The Nifty PSU Bank index was the best-performing sectoral index, rising 3.25%. The Nifty Financial Services 25/50 index gained 0.81%, while the Nifty Private Bank index advanced 0.53%. The Nifty Pharma index climbed 1.51%, while the Nifty Healthcare index rose 1.11%. The Nifty Consumer Durables index gained 0.77%. The Nifty Media index advanced 0.51%, and the Nifty Realty index rose 0.30%.The Nifty Auto index was almost unchanged, while the Nifty Oil & Gas index edged up 0.16%. The Nifty MidSmall Healthcare index gained 1.55%, and the Nifty MidSmall Financial Services index rose 0.29%. However, IT and metal stocks remained under pressure. The Nifty IT index fell 1.56%, while the Nifty Metal index declined 0.49%. The Nifty FMCG index slipped 0.36%. The Nifty Financial Services ex-Bank index fell 0.16%, while the Nifty MidSmall IT & Telecom index declined 1.11%.The Nifty Chemicals index ended 0.26% higher.TOP SENSEX GAINERS AND LOSERSState Bank of India was the top Sensex gainer, rising 2.43%. Trent advanced 2.13%, while Larsen & Toubro gained 1.96%. NTPC climbed 1.59%, HDFC Bank rose 1.52% and ICICI Bank added 1.21%.Other gainers included Maruti Suzuki, up 0.61%, Mahindra & Mahindra, up 0.59%, and Titan, which gained 0.22%. Reliance Industries edged up 0.07%, while IndiGo rose 0.03%. Kotak Mahindra Bank ended flat.On the other hand, HCL Technologies was the biggest loser, falling 2.49%. Tata Steel declined 2.43%, UltraTech Cement slipped 2%, Bajaj Finance fell 1.83% and Tech Mahindra lost 1.75%.ITC declined 1.66%, Infosys fell 1.54%, Asian Paints dropped 1.30% and Power Grid Corporation lost 1.26%. Bajaj Finserv fell 1.03%, while TCS declined 0.96%.Bharti Airtel and Bharat Electronics slipped 0.88% each. Adani Ports fell 0.54%, Sun Pharma declined 0.53%, Eternal lost 0.51%, Hindustan Unilever fell 0.42% and Axis Bank slipped 0.23%.BROADER MARKETS END MOSTLY HIGHERThe broader market indices largely ended in positive territory, although gains were modest. The Nifty 100 and Nifty 200 rose 0.21% each, while the Nifty 500 gained 0.14%.The Nifty Midcap 50 advanced 0.09%, and the Nifty Midcap 100 rose 0.17%. The Nifty Smallcap 100 edged up 0.01%.India VIX, which measures expected market volatility, declined 5.11% to 17.49, indicating some easing in near-term market nervousness.WHY DID THE MARKET STRUGGLE TO BUILD ON LAST WEEK'S RALLY?Monday's session saw investors book profits after the sharp gains recorded last week. Weakness in IT and metal stocks also weighed on the benchmarks, offsetting support from banking and pharmaceutical shares.Vinod Nair, Head of Research at Geojit Investments Limited, said Indian equities traded in a range with a positive bias, as intermittent profit booking after the recent rally limited gains.He noted that improving foreign institutional investor participation and better-than-expected corporate earnings had strengthened expectations of an upgrade to the FY27 earnings outlook, lending support to market sentiment.Nair said valuation comfort, particularly among large-cap stocks, easing geopolitical concerns, moderation in crude oil prices from recent peaks and the prospect of a double-digit earnings recovery offered a constructive medium-term backdrop.However, he cautioned that several positive macroeconomic factors appeared to be increasingly priced into the market.Investors are now awaiting inflation data from India and the US for fresh indications on the interest-rate trajectory. Crude oil prices and global risk sentiment will also remain important near-term factors, he added.CRUDE OIL PRICES FALLCrude oil prices declined during the session. US West Texas Intermediate (WTI) crude futures were trading at $90.39 per barrel, down $0.44 or 0.48%. Brent crude futures fell $0.90, or 0.92%, to $97.42 per barrel.The easing in crude prices is a positive factor for India, which depends heavily on imports to meet its oil requirements. However, investors will continue to monitor global developments and energy prices for their impact on inflation and corporate costs.Disclaimer: The views, opinions, recommendations and suggestions expressed by experts and brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.- Ends