Benchmark equity indices surged more than 1 per cent to hit their new all-time highs on Friday, with the Sensex breaching the 71,000 mark, as domestic macroeconomic data and easing concerns over the US economic growth bolstered market sentiment.
Besides, heavy buying in IT, tech and metal counters amid sustained buying by foreign investors helped the domestic equities, traders said.
Rising for the third day running, the 30-share BSE Sensex jumped 969.55 points or 1.37 per cent to settle at its record closing high of 71,483.75. During the day, it surged 1,091.56 points or 1.54 per cent to 71,605.76, its all-time intra-day high level.
As many as 1,969 stocks advanced, while 1,801 declined and 118 remained unchanged.
The Nifty climbed 273.95 points or 1.29 per cent to settle at its new closing high of 21,456.65. During the day, it zoomed 309.6 points or 1.46 per cent to hit its record intra-day peak of 21,492.30. “The Nifty’s upward momentum persists with the bulls maintaining control in the market. Achieving a new all-time high, the index has marked its seventh consecutive weekly gain,” said Rupak De, Senior Technical Analyst, LKP Securities. On the weekly front, the BSE benchmark jumped 1,658.15 points or 2.37 per cent, while the Nifty climbed 487.25 points or 2.32 per cent.
“The buoyancy continued in the market as investors were expecting the clouds over US economic growth to recede by H2 CY24 and that the economy would achieve a soft landing aided by normalisation in monetary policy. “The IT index outperformed on expectations of a rise in demand in the US economy,” said Vinod Nair, Head of Research, Geojit Financial Services.
A series of positive news — September quarter GDP growth rate of 7.6 per cent, manufacturing PMI rising to 56, Brent crude declining to USD 76 per barrel and FPIs turning buyers -- have helped markets reach record peaks, analysts said.
The US Federal Reserve keeping its key interest rate unchanged and signalling rate cuts next year, along with continuous foreign fund inflows into the equity markets, have also fuelled the rally in stocks. HCL Technologies was the biggest gainer in the Sensex pack, rising 5.58 per cent, followed by Tata Consultancy Services and Infosys, State Bank of India, Tech Mahindra, Tata Steel, NTPC and Wipro.
In contrast, Nestle, Bharti Airtel, Maruti and ITC were among the laggards.
In the broader market, the BSE smallcap gauge climbed 0.58 per cent and the midcap index dipped 0.07 per cent.
Among the indices, IT jumped 4.41 per cent, teck rallied 3.64 per cent, metal (1.78 per cent), oil & gas (1.43 per cent), commodities (1.38 per cent), energy (1.15 per cent) and bankex (0.79 per cent). FMCG, auto, realty and services were the laggards. In Asian markets, Seoul, Tokyo and Hong Kong settled with gains, while Shanghai ended lower. European markets were trading on a mixed note. The US markets ended higher on Thursday.
The stock market rally has come on the back of a dovish stance by the US Federal Reserve, which has signalled around three rate cuts in the coming years, Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities. “Cash market volumes stood sharply higher (second highest ever) as compared to recent averages. PSU bank stocks extended gains for the eleventh consecutive trading session. The combined market value of all BSE-listed companies surged by Rs 2.76 lakh crore on Friday, marking an overall increase of Rs 8.55 lakh crore for the week, reaching Rs 357.78 lakh crore,” he said.
India’s trade deficit narrowed in November from a record high the previous month, as imports fell after demand slowed following the festive season, Vakil added. The rupee jumped by 27 paise to close at 83.03 (provisional) against the US dollar on Friday following unabated foreign fund inflows and a record-breaking rally in domestic stocks. Foreign Institutional Investors (FIIs) continued their buying momentum as they bought equities worth Rs 3,570.07 crore on Thursday, according to exchange data.
