Stock market rally India: Indian equity markets have once again reclaimed the lost milestones but closed the session off highs. The 30-stock-led BSE Sensex closed 1% higher at 81,765.86 after it surged past the 82,000 level on Thursday during intra-day. The Nifty 50 closed the session 240.95 points or 0.98% higher at 24,708.40 while it reclaimed 24,800 in intra-day on the day of weekly expiry. According to analysts, the initial spurt was due to selective buying banking and heavy-weight counters by both DIIs and FIIs.
Further support to the positive momentum in Nifty around 24,600 came after the short covering took place, said Ajit Mishra, Senior Vice President of Research at Religare Broking. “The recent market surge has already factored in potential support from the RBI, making the market’s reaction to Friday’s outcome crucial.”
The Sensex jumped 1,361.41 points from the previous day’s close to a high of 82,317.74, a rise of 1.7%. The benchmark index is now 3,660.51 points away from its all-time high.
Meanwhile, the Nifty 50 rallied 390 points from its previous day’s close to the day’s high of 24,857.75, a surge of 1.6%. The key index saw a sharp recovery from the day’s low of 24,295.55.
Select heavyweights like Infosys, ICICI Bank, Reliance Industries, TCS, and Bharti Airtel were the top five major contributors to the Nifty 50. While, Infosys, Titan, TCS, Dr, Reddy’s Laboratories, and Bharti Airtel were the top five major gainers in the Nifty 50, rallying as much as 3.2%.
The broader markets supported the rally, the Nifty Bank touched the mark of 53,888.30, an increase of 1.2%. The index is 579.05 points away from its lifetime high of 54,467.35. The Nifty Midcap 100 advanced to an intra-day high of 58,448.25 level, a hike of 0.5%.
“The market is expecting a rate cut, driving momentum in PSU banks, private banks, and financial services in recent days amid speculation. However, any deviation from these expectations could potentially disrupt the sector’s momentum. The RBI, on the other hand, may choose to delay rate cuts to ensure inflation aligns more comfortably with its target levels, prioritizing economic stability over immediate market sentiments,” said Gaurav Garg, Research Analyst at Lemonn.
“The market experienced a sharp recovery from the day’s low, closing with strong gains. A positive turnaround from FIIs for the past couple of days to India in expectation of a dovish monetary policy by RBI supported the sentiment. Further, stability in November service PMI data despite a rise in inflation shows steadiness in business activity,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.