Sensex and Nifty Surge in Early Trade on Global Rally and Strong IT Sector Performance
Mumbai: Equity benchmark indices, Sensex and Nifty, experienced a significant uptick in early trade on Friday, driven by a robust global market rally and strong buying activity in IT stocks and Reliance Industries.
The BSE Sensex surged by 805.96 points to reach 79,911.84, while the NSE Nifty jumped 252.05 points to 24,395.80. All 30 companies listed on the Sensex were trading higher in the initial hours, with notable gains from Mahindra & Mahindra, Tata Motors, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Reliance Industries, ICICI Bank, JSW Steel, Infosys, and IndusInd Bank.
Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, also recorded substantial gains, reflecting a positive global sentiment. This optimism follows sharp gains in US markets on Thursday, which rebounded from earlier declines caused by recession fears and the unwinding of the yen carry trade.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that recent US inflation and unemployment data alleviated recession concerns, suggesting a potential Federal Reserve rate cut in September. This development has bolstered market confidence.
Despite Foreign Institutional Investors (FIIs) offloading equities worth Rs 2,595.27 crore on Wednesday, Domestic Institutional Investors (DIIs) countered by purchasing equities worth Rs 2,236.21 crore, according to exchange data.
Global oil prices saw a slight dip, with Brent crude falling 0.25 percent to USD 80.84 per barrel.
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, attributed the market surge to strong cues from Wall Street, the anticipated rate cut by the Federal Reserve, and encouraging US retail sales figures, which have eased recession worries.
The Indian stock markets were closed on Thursday for Independence Day. On Wednesday, the BSE benchmark had climbed by 149.85 points or 0.19 percent, settling at 79,105.88, while the NSE Nifty ended marginally higher by 4.75 points or 0.02 percent at 24,143.75.
