NEW DELHI: A day after India reported robust GDP numbers in third quarter of current financial year, domestic share market benchmarks - NSE Nifty50 and BSE Sensex - hit record high on Friday and closed the session with a massive gain of 1.6-1.7%. The latest US Inflation figure, which raised hopes of a rate cut in the coming months and positive auto sales numbers, also aided the buying activity.
The Sensex hit a record high of 73,819, while the Nifty50 touched 22,353 intraday. The 30-share pack ended the session at 73,745, up 1,245 points, the Nifty settled at 22,339, up 356 points. Market capitalisation of BSE-listed companies grew by 4.29 lakh crore to `392.25 lakh crore ($4.78 trillion).
“Strong resilience in India’s Q3 GDP growth numbers propelled Sensex & Nifty to fresh record highs amid a rally in index heavyweights such as Reliance Industries, Tata Steel and banking stocks,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Data released by the Ministry of Statistics and Programme Implementation on Thursday showed the December quarter GDP growth (at 8.4%) is the highest in six quarters. Investors cheered this growth even as the growth rate of eight core sectors slowed to a 15-month low of 3.6% in January 2024.
Foreign institutional investors (FIIs) reduced their selling spree and remained net buyers on Friday as all the major global indices surged ahead after an overnight rally in the US market. Mehta added that despite sharp rally, volatility cannot be ruled out due to ongoing concerns like delays in rate cuts, conflicts in the Middle East and expensive valuations of local stocks.
“The upsurge shows investors are willing to place bullish bets on Indian stocks amid continuity in economic policies and robust investment climate. From a technical perspective, if today’s bullish trading action is any indication, then Nifty’s next goal post is seen at its psychological 22,500 mark followed by targets placed at 23,000 mark, while the make-or-break support is at 21,861 mark,” the analyst said.
Vinod Nair, head of research, Geojit Financial Services, said as the general election draws closer, stellar economic growth data raised confidence among investors for a pre-election rally. On the global front, in-line US personal consumption expenditure data and benign Eurozone inflation will influence global central banks to take a dovish view on interest rates, added Nair.
FIIs turn net buyer
Foreign institutional investors (FIIs) reduced their selling spree and remained net buyers on Friday as all the major global indices surged ahead after an overnight rally in the US after release of inflation data