Market Close: Nifty, Sensex Post Sharp Recovery as US-China Talks Aim for Middle East Peace

Mumbai, May 14: Shares ended sharply higher on Thursday, extending gains from the mild recovery seen yesterday as US-China talks aimed for Middle East resolution and earnings added to the sentiment. The sharp recovery comes after recent volatility driven by elevated crude oil.

To be sure, telecom operator Bharti Airtel, state-owned explorer Oil India, and pharmaceuticals firm Cipla all rose after results, with Airtel and Cipla ending up on the top gainers list. Moreover, in Cipla’s case, investors chose to look beyond near-term pressure on earnings.

Sensex and Nifty ended sharply higher on Thursday led by strong buying in banking, pharma, metal and infrastructure stocks, while IT shares remained under pressure throughout the session. The Sensex rose 789.74 points or 1.06 per cent to settle at 75,398.72, and the Nifty climbed 277 points or 1.18 per cent to close at 23,689.60. All this even as rupee slumped to a record low.

Broad Based

The rally was broad-based, as Nifty Pharma jumped 2.74 per cent and Nifty Metal gained 2 per cent, reflecting strong sectoral momentum. Financials also aided the upmove. Banking stocks traded firmly higher, supported by expectations of steady credit growth and resilient earnings. Nifty PSU Bank and private bank indices rose over one per cent, in lockstep with the Nifty Bank index. Infrastructure-linked counters also attracted buying interest, adding to the positive tone.

IT Down

In contrast, technology stocks continued to face selling pressure. Nifty IT fell nearly 2 per cent, making it the only major sector index to end in the red. Infosys, Tech Mahindra, HCL Tech and TCS were among the top Nifty losers, as concerns around global demand visibility and artificial intelligence-led disruption weighed on sentiment. The sector’s underperformance stood out amid the broader market rally. To be sure, these tech stocks have fallen for a fourth day in a row.

Market breadth remained mixed despite the sharp gains in benchmark indices. As many as 2,019 shares advanced against 1,988 declines, indicating that the upmove was not entirely one-sided and that participation was relatively balanced across counters.

Within broader markets, mid-cap stocks outperformed benchmark indices and small-cap shares ended largely flat, reflecting consolidation.

Global Cues

Global cues supported domestic sentiment, with firm trends across Asian markets and a positive undertone in US equities aiding risk appetite. Investors also tracked movements in crude oil prices and currency trends, which remain key macro variables influencing inflation and external balance expectations. Despite these external considerations, domestic liquidity and institutional buying helped sustain the rally.

Overall, Thursday’s session reflected renewed optimism and sectoral rotation, with pharma, metals and banking driving gains while IT remained under pressure. The strong close suggests investors continue to view dips as buying opportunities, though volatility linked to global factors is likely to keep markets active in the near term.

Source: Exchanges