The S&P BSE Sensex added 1330.96 points to close at 80,436.84, while the NSE Nifty50 gained 397.40 points to end at 24,541.15.
Benchmark stock indices ended higher on Friday, snapping a two-week losing streak, driven by a surge in IT stocks following strong US economic data that eased concerns about a potential recession in the world’s largest economy.
Read More:- Stock Market Holiday on Raksha Bandhan? Are NSE, BSE closed on August 19?
The S&P BSE Sensex added 1330.96 points to close at 80,436.84, while the NSE Nifty50 gained 397.40 points to end at 24,541.15.
“Markets staged a robust recovery on Friday, gaining nearly 1.5%, driven by positive global cues. After opening with a gap-up, the Nifty initially lost all its gains in the early hours but rebounded due to strong buying interest in select heavyweight stocks,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Rupak De, Senior Technical Analyst, LKP Securities said that Nifty rallied above 24500 after days of consolidating within a 400-500 point range. In the near term, Nifty may continue consolidating within the 24300-24550 range.
Read More: Rs 920 Dividend Stocks: 95 companies’ shares to turn ex-date next week – Full List
“Only a decisive move above 24550 could trigger a directional up move in the index. A buy-on-dips strategy may be more effective unless Nifty decisively falls below 24300,” said De.
Vinod Nair, Head of Research, Geojit Financial Services said that the stability of the JPY has been instrumental in driving a global market recovery.
Besides that, the strong US retail sales and a decline in weekly jobless claims have helped alleviate fears of a U.S. recession.
Read More: Upcoming IPO: Nisus Finance Services files DRHP to launch BSE SME IPO. Details here
“Further, the market sentiment has improved due to a decrease in U.S. CPI inflation. On the backdrop of these, the Indian IT firms exhibited strong buying interest. Domestically, the Indian CPI inflation rate has fallen below the estimate, signalling optimism. However, challenges such as a drop in WPI inflation, weak IIP, and lukewarm Q1 corporate earnings suggest that market gains may be limited, which is reflected by FIIs maintaining a net seller position,” said Nair.
In today’s Nifty 50 trading, several stocks made notable moves. Leading the pack of top gainers was Wipro, surging 4.23% higher.
Tech Mahindra followed closely with a 3.98% increase, while Grasim Industries rose by 3.65%. M&M and Tata Motors also performed well, climbing 3.45% and 3.36% respectively.
Divislab emerged as the biggest loser, dropping 0.62%. SBI LIFE and Dr Reddy’s also saw minor declines, falling 0.07% and 0.02% respectively.
The Nifty Midcap100 index rose by 1.96%, indicating good performance among medium-sized companies. Similarly, the Nifty Smallcap100 index increased by 1.93%. The India VIX, which measures market volatility, declined by 6.68%.
Vaibhav Vidwani, Research Analyst, Bonanza Portfolio Ltd said that all sectoral indices ended in the green, reflecting a broad-based rally.
Read More:- Broach Lifecare IPO booked nearly 80 times on Day 3; Solve Plastic’s issue subscribed 17x
“The BSE Midcap and Small cap indices also rose by over 1%, indicating strong investor sentiment across various market segments. Market participants were buoyed by favorable global cues, with Asian markets showing gains following a positive performance in the US. As probability of rate cut is increasing in September that brought optimism in overall market and supported IT stocks,” he added.
The media sector led the gains with the Nifty Media index surging 2.89%. The auto sector also performed well, with the Nifty Auto index rising 2.01%. The real estate sector showed significant strength as well, with the Nifty Realty index climbing 2.49%.
Read More: Rakesh Jhunjhunwala 5 Stocks Skyrocketed In 5 Years; Check Returns On Tata Motors, Titan & More
Other notable gainers included the Nifty Financial Services index, up 1.70%. The banking sector saw robust performance with the Nifty Bank index increasing by 1.59% and the Nifty Private Bank index gaining 1.65%. The Nifty Metal index advanced 1.69%, while the FMCG sector, represented by the Nifty FMCG index, rose 1.48%.
The Nifty IT index showed a solid uptick of 2.28%, indicating strength in the technology sector. Other sectors that gained include Nifty Consumer Durables (1.27%), Nifty Oil & Gas (1.49%), Nifty PSU Bank (1.02%), and Nifty Midsmall Healthcare (1.27%).
The pharmaceutical sector, represented by the Nifty Pharma index, saw a modest gain of 0.43%. The Nifty Healthcare index also moved up, albeit slightly, by 0.73%.
