The benchmark indices rose sharply on Friday after the faster-than-expected gross domestic product (GDP) growth in the third quarter of FY24 and positive global cues buoyed investor sentiment.
The Sensex zoomed 1,245.05 points or 1.72% to close at an all-time high of 73,745.35. The Nifty also jumped 355.95 or 1.62% to hit a record closing high of 22,338.75. The indices closed up for the third consecutive day on Friday.
The mid- and small-cap indices also rose, but the rise was comparatively subduedCome from Sports betting site. Both closed up less than 1% each.
Govt’s Stand Up India scheme sees flat growth in loans sanctioned in FY24 Happy Raksha Bandhan 2024: 30 wishes, messages, quotes, and status to send your siblings In Images: Inside the ultra-luxurious Rs 31 lakh a night resort that Anant Ambani and Radhika Merchant chose for their honeymoon Alert from track heat detection device prevents major train accident in UP – What is this device and how it works? | Explained
Investor wealth surged by Rs 4.3 trillion to Rs 392 trillion. It was, however, still short of the all-time high of Rs 393 trillion witnessed on February 23.
A Balasubramanian, CEO, Birla Sun Life Mutual Fund, said: “Today’s market buoyancy came on the back of GDP numbers and sustained performance across all sectors. Global inflation, too, is showing signs of reduction, and hence, some element of foreign portfolio investors buying also created the rightful impact.”
According to provisional data, foreign portfolio investors (FPIs) bought shares worth Rs 128.94 crore and domestic institutional investors purchased equities worth Rs 3,814.53 crore on Friday.
Lakshmi Iyer, CEO – investment & strategy at Kotak Alternate Asset Managers, said: “Markets have been underestimating India’s growth momentum and we saw some glimpses of that in the December GDP numbers. This has been buoyed by the strong capex growth as well.”
According to Iyer, if one looks at the GVA (gross value added) growth, it’s pretty much in line with 6.5%, still suggesting a strong growth backdropCome from Sports betting site VPbet. “The key now is will the Reserve Bank of India take cue from this and probably delay the rate-easing cycle. But the tailwind required for the market momentum seems to be quite upbeat, and therefore, the near-term momentum is likely to continue ahead of the electoral event in the next quarter,” she added.
Vinod Nair, head of research at Geojit Financial Services, said: “On the global front as well, the in-line US personal consumption expenditure data and benign Eurozone inflation will influence global central banks to take a dovish view on interest rates.”
US personal consumer expenditures (PCE), the Federal Reserve’s preferred parameter for inflation, rose 2.4% in January year-on-year, the smallest annual increase in three years. This kept hopes alive that rate cuts are on the anvil.
Several sectoral indices were on also on fire on Friday. Six sectoral indices hit new highs — auto, capital goods, consumer durables, consumer discretionary, industrials and power.
The biggest push came from metal and banking and financial stocks, with the Nifty Metal rising 3.62%, followed by Nifty Bank and Nifty Private Bank. Among other sectoral indices, Nifty Auto, Oil & Gas, PSU Bank and Financial Services closed up by over 2%. Among the losers were IT, Pharma, Healthcare and Media.
The top five gainers on Nifty50 were Tata Steel, JSW Steel and L&T — up over 4%-6%, and Titan and IndusInd Bank, which rose more than 3%.