FINAL TRADE: Barometers end at fresh closing highs; Nifty ends near 25,400, Sensex settled 1,440 pts higher

Indian equities amid buoyant mood ended at fresh closing highs as investors awaited the domestic CPI data later in the day. Nifty ended higher by a sharp 1.89 per cent or 470.45 points at 25,388.9 levels, while the Sensex ended 1.77 per cent higher at 82,962.71 led by gains in the metal, auto, energy and PSU Banking stocks.

Meanwhile, broader markets underperformed the headline indices, with Nifty Midcap 100 ending just over 1 per cent higher after recording fresh highs earlier in the day.

Bank Nifty too ended 1.5 per cent amid strong buying sentiment. From the Nifty pack, top gainers included stocks like Hindalco, Bharti Airtel, NTPC, Shriram Finance and Mahindra and Mahindra.  Furthermore, Of the 50 stocks constituting the Nifty 50 index, 49 ended in the green, with only Nestle recoding mild weakness at the close.

Primarily, broad-based buying sentiment and exuberance in the market after the latest CPI inflation data in the US propelled sentiment signalling a probable 25 bps rate cut by the US Federal Reserve next week.

Stocks from the EV stream gained traction after the Cabinet approved the PM E-Drive scheme, which drove Bajaj Auto stock to all-time high today. The stock ended higher by 3 per cent at 11,717.8.

Technical indicators

Rupak De, Senior Technical Analyst, LKP Securities suggests that "The Nifty has broken out of its recent consolidation on the daily chart, indicating a rise in optimism. Additionally, the index has been sustaining above the critical 21-day EMA, a near-term moving average. The RSI on the daily chart shows a bullish crossover, reinforcing the positive sentiment."

The trend is expected to remain strong, as the index closed above the recent consolidation high. On the upside, the rally could potentially continue toward the 25,470–25,500 range, while support is seen at 25,100, added De.

Global markets

Meanwhile, European markets traded with over 1 per cent gains, with German DAX index up 1.4 per cent at the last count. Investors in the region are awaiting the monetary policy outcome from the European Central Bank (ECB).