Sensex and Nifty gained two percent
Mumbai: Indian stock markets closed with a strong rally on Friday, the last day of the trading week. Bulls dominated Indian benchmark indices as the Sensex gained over 1,961 points and the Nifty rallied 557 points. The rally in the market was mainly led by large-cap stocks.
The Sensex and Nifty rose over 2 per cent on the back of a rally in financial stocks and strong US labor market data. A rally in blue-chip bank stocks also helped the benchmark indices surge in Friday’s trade. The Sensex closed at 79,117.11, up 1,961.32 points or 2.54 per cent, and the Nifty closed at 23,907.25, up 557.35 points or 2.39 per cent.
This is the biggest rally since June 5, when the BSE Sensex had surged 3.20 per cent or 2,303.19 points to 74,382.24. While, the NSE Nifty was up 3.36 per cent or 735.85 points at 22,360.25.
Market watchers said the broader market recovery is creating opportunities to accumulate quality stocks with strong fundamentals and resilience to macroeconomic pressures. Krishna Appala of CapitalMind Research said, “Despite global challenges, India’s long-term growth story remains intact. Investors should focus on sectors linked to themes such as urbanisation, infrastructure and consumption growth. Strategic portfolio adjustments, disciplined investing and a long-term view are key to navigate the current environment.”
The IT sector, despite its recent poor performance, is poised for a recovery in the medium term as global headwinds ease. Vinod Nair, Head of Research at Geojit Financial Services, said global markets also witnessed positive momentum due to marginal fall in Japan’s October inflation and 39 trillion yen stimulus package.
“Easiness in global and domestic politics provided relief to the domestic market,” Nair said. Strong buying by domestic institutional investors (DIIs) and strong trends in US markets fuelled the recovery in domestic equities.
Out of the 30-share Sensex pack, State Bank of India, ICICI Bank, IndusInd Bank, Tata Motors, Power Grid, Bajaj Finance, Bajaj Finserv and Tech Mahindra were the top gainers. Foreign institutional investors (FIIs) sold shares worth Rs 5,320.68 crore on Thursday, while DIIs bought shares worth Rs 4,200.16 crore.
