Nifty closes below 25,000 despite IT-led rally; paper stocks jump

The Nifty closed higher on Monday, supported by gains in information technology stocks, while paper companies rallied sharply after the government tightened some import norms.The blue-chip NSE Nifty 50 rose 98 points to settle at 24,968, while the S&P BSE Sensex gained 329 points to close at 81,636. Both benchmarks traded in a narrow range through the session, with the Nifty facing resistance around the 25,000 level.

Four of the top five gainers on the Nifty were IT companies, with Tata Consultancy Services, Infosys, HCLTech and Wipro rising between 1.5% and 3% after brokerages turned positive on the sector. The Nifty IT index added 2.3%, extending recent gains.

Hero MotoCorp and IndusInd Bank rose about 1-2% even as the two stocks are set to be excluded from the benchmark Nifty 50 index.Sector moversThe Nifty Bank index slipped 10 points to 55,139, while the broader midcap index gained 72 points to 57,702. Capital market-linked stocks were under pressure, with BSE Ltd and Angel One falling 2-3%.

Among individual stocks, Vodafone Idea extended Friday’s gains to close 5% higher, while PG Electroplast rose over 3% ahead of a likely exit from the futures and options ban list. IRB Infrastructure and Jindal Stainless advanced more than 3% each on similar expectations.

Paper stocks rally

Paper producers surged after the government tightened some import norms, fuelling optimism about domestic demand. Tamil Nadu Newsprint and Papers, Malu Paper, West Coast Paper and JK Paper jumped between 10% and 17%.

Overall market breadth was weak, with the advance-decline ratio at 4:5, indicating more losers than gainers on the day.