Defence Gains and Services Growth Boost Market Amid Mixed Performance

The stock market closed flat on Wednesday, bolstered by significant gains in defence stocks and robust growth in the services sector. The Sensex rose by 110.58 points, but the Nifty saw only a marginal increase. Market breadth was negative, with advancements in 19 Nifty companies, while 31 declined.

The stock market closed relatively unchanged on Wednesday, supported by impressive gains in defence stocks and strong growth in the services sector, which helped counterbalance declines elsewhere. The Sensex increased by 110.58 points, reaching 80,956.33, while the Nifty saw a slight rise of 2.35 points, ending at 24,461.25. Despite these gains, the overall market performance was mixed, with 19 Nifty companies advancing and 31 declining.

Leading the charge on the Nifty index were HDFC Life, HDFC Bank, NTPC, Apollo Hospital, and Bajaj Finserv, marking them as the top gainers. Conversely, Bharti Airtel, Cipla, Bajaj Auto, Adani Ports, and Tata Motors stood out as the principal decliners, highlighting a varied performance across different sectors.

The day saw a notable surge in defence stocks following the Defence Acquisition Council's approval of acquisition proposals totaling Rs21,772 crore. This news boosted shares of Mazagon Dock Shipbuilders and Garden Reach Shipbuilders by nearly 5%, while Bharat Electronics, Hindustan Aeronautics, and Bharat Dynamics gained 2-3%. Commenting on these movements, VLA Ambala, Co-Founder of Stock Market Today, remarked on the strengthened portfolios and increased investor interest in the defence sector.

Meanwhile, India's services sector continued to exhibit strong growth, driven by solid domestic and international demand, increased hiring, and improved business sentiment despite significant price hikes. This optimism has helped reinforce positive market sentiment, offering additional support to the indices. Ambala also pointed out technical indicators, such as the Nifty index testing the 24,500 level and forming a 'Doji candlestick pattern,' suggesting a promising outlook for mid-term and long-term investors. He advised investors to consider accumulating quality mid-cap and small-cap stocks. (ANI)

(With inputs from agencies.)