The domestic equity market indices continued their rally for the fourth consecutive session on Friday, with the Sensex crossing 84,000 mark for the first time in nine months, led by easing geopolitical tensions, easing oil prices and renewed buying interest from foreign investors.
The 30-share BSE’s Sensex rose 0.36 per cent, or 303.03 points, to close at 84,058.9. The index had last ended at 84,266.29 on October 1, 2024. The broader Nifty gained 0.35 per cent, or 88.8 points, to end at 25,637.8.
“Indian equity benchmarks staged a sharp rebound this week, reversing early volatility to close on a firm footing. The rally was underpinned by easing geopolitical tensions in the Middle East and a steep decline in crude oil prices, which buoyed investor sentiment across sectors,” said Vinod Nair, head of research, Geojit Investments Ltd.
In the last two trading sessions, foreign portfolio investors net bought Rs 13,991.4 crore of domestic shares. On the contrary, domestic institutional investors (DIIs) sold Rs 784.16 crore worth of equities on a net basis.
Global risk assets rallied as a notable shift in tone from several US Federal Reserve governors signalled a dovish turn in monetary policy. Speculation intensified around a potential rate cut as early as July.
“The recent geopolitical stability has improved risk sentiment, as seen in the broad-based market participation. Moreover, positive developments around potential trade agreements could further strengthen the bullish bias. We continue to recommend a “buy on dips” strategy on the index, with an emphasis on selective stock picking for better opportunities,” said Ajit Mishra – senior vice president, research, Religare Broking Ltd.
Broader markets outperformed, with the Nifty Midcap 100 and Smallcap 100 extending their winning streak to six consecutive sessions. The midcap pack rallied more than 2 per cent during the week, while the smallcap universe delivered an outsized move, jumping over 4 per cent for the week.
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Sectorally, the market breadth tilted positive with most NSE indices ending in the green. Nifty Oil & Gas outshone peers with a 1.19 per cent uptick, followed by Nifty Infrastructure and Nifty Energy, which climbed 0.89 per cent and 1 per cent, respectively. PSU Banks, pharma, metals, and media also posted moderate gains, rising between 0.4 per cent and 0.55 per cent.
On Friday, the NSE companies that gained the most included Jio Financial Services (3.87 per cent), Asian Paints (3.15 per cent), Apollo Hospitals (2.94 per cent) and IndusInd Bank (2.89 per cent).
“Going ahead, Nifty will maintain overall positive bias and head towards 25,900-26,000 levels in the coming week being the measuring implication of the last week’s range (25,200-24,500),” Bajaj Broking Market said in a note.
The current rally is corroborated by positive market breadth, characterized by broad-based sectoral participation, which adds further credibility to the ongoing uptrend. The upper band of the recent consolidation range 25,100-25,200 is likely to reverse its role and act as key support in coming weeks, the note said.
