Indian stock markets surged on Friday, with both key indices gaining over 1% by midday, driven by a global stock rally and robust performances in key sectors such as IT and real estate.
The Sensex soared by 953 points, or 1.24%, reaching a new milestone of 80,075 points. The Nifty 50 also made gains, rising 295 points, or 1.22%, to 24,445 points. The sharp uptick in Nifty IT and Nifty Realty, both of which surged over 2%, contributed to the market’s upward momentum. Other major sectoral indices, including Nifty Auto and Nifty Media, saw gains of more than 1%.
Top performers in the Nifty 50 included Wipro, which jumped over 3%, along with LTIM, Tech Mahindra, Mahindra & Mahindra, and Apollo Hospitals, each posting strong gains.
The Nifty 50 began the day up 191 points, or 0.79%, at 24,334.85, while the BSE Sensex opened 646 points higher, or 0.82%, at 79,751.90 points.
The rally in Indian markets mirrors a global rebound following the sell-off on August 5, which was spurred by fears of a U.S. recession and the unwinding of Yen carry trades. However, recent U.S. economic data, including inflation and unemployment figures, have alleviated recession concerns, signaling a potential soft landing for the economy.
“Strong global cues are supportive for the Indian markets. Of the three global risks at the start of the week, all three have watered down considerably,” said Ajay Bagga, a banking and market expert. He highlighted the diplomatic efforts that averted a potential Iran-Israel conflict and positive U.S. inflation and unemployment data as key factors driving the market.
“For India, the one issue is continued FPI [Foreign Portfolio Investors] selling, which has taken out nearly USD 2.8 billion from the cash equities segment this month so far. Sideways markets have marked time in a consolidation phase and may be setting up for another attempt at all-time highs over the next week,” Bagga added.
(ANI)