The Indian stock market ended on a strong note on Friday, with benchmark indices S&P BSE Sensex and NSE Nifty50 both experiencing significant gains, driven primarily by a rally in heavyweight stocks. The Sensex climbed 819.69 points to close at 79,705.91, while the Nifty50 surged 250.50 points to end at 24,367.50. This upward movement marked a more than 1% increase in both indices, reflecting positive investor sentiment.
The rally was largely attributed to favorable economic data from the United States, which eased concerns about a potential recession. Positive jobless claims data in the US provided a much-needed boost to global markets, including India, leading to a broad-based rally across sectors. Vinod Nair, Head of Research at Geojit Financial Services, noted that the improved outlook for IT spending helped the sector outperform, although he cautioned that a lack of new market triggers and subdued earnings could pose challenges to sustaining higher valuations. He advised investors to consider shifting their focus from growth stocks to value stocks to protect their portfolios.
In the day's trading session, the Nifty50 index saw a mix of strong performers and mild laggards. Eicher Motors led the gainers with an impressive 5.68% rise, followed by M&M, which saw a robust gain of 3.05%. Other notable performers included Shriram Finance, up 2.88%, Tata Motors, which gained 2.81%, and Tech Mahindra, which closed 2.63% higher. On the downside, HDFC Life saw the steepest decline, dropping 1.09%. Kotak Mahindra Bank also dipped slightly, losing 0.16%, while Maruti Suzuki and Sun Pharma experienced marginal decreases of 0.12% and 0.10%, respectively.
Vaibhav Vidwani, Research Analyst at Bonanza Portfolio Ltd, highlighted the resilience of the domestic market in the face of global fluctuations. He pointed out that strong corporate earnings and positive future guidance have been key factors supporting the Indian market's upward momentum. This resilience was also reflected in the broader market indices, with the Nifty Midcap100 gaining 0.87% and the Nifty Smallcap100 rising by 0.56%, indicating growing investor confidence across market segments.
The India VIX, often referred to as the market's 'fear gauge,' saw a significant drop of 7.45%, further signaling reduced market volatility and increased investor optimism.
The day's trading also saw the successful debut of Ola Electric Mobility shares on the stock exchange. The company's shares soared 20% over the IPO allotment price, hitting the upper circuit during the day after a strong oversubscription to its public issue. This robust debut reflects the high demand and positive sentiment surrounding the electric vehicle sector in India.
All Nifty sectoral indices closed in positive territory, underscoring the widespread bullish sentiment among investors. The media sector emerged as the top performer, with the Nifty Media index surging by 1.83%. The automotive sector also saw significant gains, with the Nifty Auto index climbing 1.72%. Other sectors that posted strong performances included the Nifty PSU Bank index, which rose 1.92%, and the Nifty IT index, which advanced by 1.55%. The Nifty Realty and Nifty Oil & Gas indices also recorded gains of 1.55% and 1.33%, respectively.
The financial services sector showed strength across the board, with the Nifty Bank index up 0.65%, Nifty Financial Services rising 0.63%, and the Nifty Financial Services 25/50 index gaining 0.64%. The Nifty Private Bank index also contributed to the positive trend, increasing by 0.49%.
Consumer-oriented sectors performed well, with the Nifty Consumer Durables index rising by 0.61% and the Nifty FMCG index adding 0.19%. The healthcare sector posted modest gains, with the Nifty Healthcare Index up 0.47% and Nifty Pharma increasing by 0.43%. The Nifty Metal index gained 0.77%, and the Nifty Midcap Healthcare index rose by 0.38%, rounding out a strong day for the Indian stock market.
Â
