BSE, Nifty Sectoral Snapshot: Pharma and Metals Lead Rally as IT Continues to Bleed

Mumbai, May 14:Equities extended gains on Thursday, with benchmarks closing sharply higher amid a broad-based rally that saw only IT sliding. The surge in markets was clearly led by pharma and metals.

The Nifty rose 1.18% to 23,689.60, while the Sensex gained 1.06% to settle at 75,398.72, as fifteen of the sixteen major sector indices rose.

Pharma and Metals Drive Momentum

Defensive and commodity-linked sectors were at the forefront of the advance. Nifty Pharma jumped 2.74%, making it the top-performing sector of the day, supported by broad-based buying in large-cap drugmakers. The surge was led by Cipla which rose eight per cent during the day, winding up on the top gainers list on Nifty. To be sure, the rally despite profit missing estimates as investors chose to look past the near term headwinds from the company’s North America business and decided to reward long term structural prospects instead.

Metals gained 2% on their index, tracking improved global risk appetite and stable commodity cues, as Vedanta and Adani Enterprises rose five and nine per cent respectively. The sector benefited from expectations of resilient demand and firm base metal trends, which supported sentiment in select heavyweights. Interestingly, SAIL went down 1.14% after a blistering 14% rally yesterday caused by a short squeeze — where aggressive bearish bets are forced to close out as prices rise against them, creating a feedback loop of additional buying.

Financials Also Contribute

Banking stocks traded firmly higher, providing additional support to indices. Both private and PSU bank indices ended in the green, reflecting optimism around credit growth and earnings visibility. While not the primary drivers of the session, financials helped sustain the momentum generated by pharma and metals.

Consumer Durables Support

The index rose one per cent as jewellery stocks posted a rebound after sliding over the past few sessions over a nationwide call to delay gold purchase for a year and a hike in import duty for precious metals. Titan rose more than one per cent while Kalyan Jewellers increased two per cent. However, Dixon Technologies, which is an India-based electronics manufacturing services provider, edged down after jumping yesterday despite weak results.

IT Continues to Underperform

In contrast, technology stocks remained under sustained selling pressure. The Nifty IT index declined nearly 2 per cent, making it the only major sector index to finish in negative territory. Heavyweights such as Infosys, Tech Mahindra, HCL Tech and TCS were among the top draggers on the Nifty, as concerns over global demand trends and worries about AI-led disruption continued to weigh on sentiment. The sector’s weakness stood out sharply against the broader market rally. Notably, the IT pack extended its losing streak to a fourth consecutive session.

Market Breadth and Global Cues

Despite strong index gains, market breadth was relatively balanced, with advances only slightly exceeding declines. Mid-cap stocks outperformed benchmark indices, while small-caps ended largely flat, indicating selective participation.

Global cues remained supportive, with firm trends across Asian markets and improved risk sentiment internationally aiding domestic equities. Investors also continued to track crude oil movements and currency trends, which remain important macro drivers.

Source: NSE