MUMBAI: Benchmark indices Sensex and Nifty surged nearly 1 per cent on Friday, marking their fifth consecutive day of gains, driven by fresh foreign fund inflows and strength in banking stocks.
The 30-share BSE Sensex jumped 557.45 points or 0.73 per cent to close at 76,905.51 after surging 693.88 points or 0.90 per cent intraday to touch 77,041.94. The NSE Nifty climbed 159.75 points or 0.69 per cent to settle at 23350.40.
Market experts attributed the rally to renewed optimism following indications from the US Federal Reserve about the possibility of two rate cuts this year.
Among Sensex stocks, NTPC, Bajaj Finance, Kotak Mahindra Bank, Axis Bank, Nestle, Larsen & Toubro, Tata Motors, ICICI Bank, Power Grid, and Zomato were top gainers, while Infosys, Tata Steel, Mahindra & Mahindra, Titan, and Bajaj Finserv ended in the red.
“The domestic market closed the week on a strong note. Expectations of lower risk-free rates and a correction in the dollar index are driving fund flows back into emerging markets. Foreign institutional investors, who had been reducing their selling activity, are turning net buyers, buoyed by the Fed’s dovish stance,” said Vinod Nair, Head of Research at Geojit Financial Services.
Foreign institutional investors (FIIs) bought equities worth Rs3,239.14 crore on Thursday, according to exchange data.
Broadbased participation
“Markets maintained their upward momentum for the fifth straight session, gaining over half a per cent. Optimism prevailed from the start, with broad-based participation pushing Nifty past the 23,400 mark before it settled at 23,350.40,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
The BSE smallcap index climbed 2.05 per cent, while the midcap index rose 1.14 per cent.
Among BSE sectoral indices, oil & gas surged 2.25 per cent, utilities 2.11 per cent, telecommunications 1.91 per cent, energy 1.86 per cent, healthcare 1.56 per cent, industrials 1.30 per cent, and services 1.26 per cent. Consumer durables and metal stocks lagged behind.
On the BSE, 2823 stocks advanced, 1213 declined, and 126 remained unchanged.
For the week, the Sensex surged 30,76.6 points or 4.16 percent, while the Nifty gained 953.2 points or 4.25 percent.
In Asia, Seoul ended in positive territory, while Tokyo, Shanghai, and Hong Kong closed lower. European markets were also trading lower, while US markets ended marginally down on Thursday.
Brent crude oil slipped 0.21 percent to $71.85 per barrel.
On Thursday, the Sensex had soared 899.01 points or 1.19 percent to close at 76348.06, reclaiming the 76000 level. The Nifty jumped 283.05 points or 1.24 percent to settle at 23190.65, crossing the 23000 mark.
