Indian Stock Market Surges on Friday
The Indian stock market witnessed a significant surge on Friday. The Sensex jumped 800 points, and the Nifty crossed the 25,000 mark for the first time. Buying was observed across almost all sectors.
Stock Market Update: After three consecutive days of decline, the Indian stock market rebounded bly on Friday. The Sensex climbed nearly 790 points to close at 82,152, reflecting an approximate 0.97% increase. Meanwhile, the Nifty surged by 230 points, reaching 25,023, marking its first-ever crossing of this level. This market rally was driven by widespread buying and positive domestic indicators.
Strong Opening Bell
The market opened on a positive note. The BSE Sensex started trading at 81,602, up 240 points, while the Nifty opened at 24,860, up 67 points. These morning figures indicated a resurgence of investor confidence and active buying.
Sectoral Performance: Winners and Losers
Auto, finance, and FMCG companies saw the most significant gains in today's trading. Mahindra & Mahindra, Eicher Motors, Bajaj Finserv, SBI, UltraTech Cement, Maruti Suzuki, Bharti Airtel, and Nestle India witnessed substantial gains. On the other hand, IndusInd Bank, Bajaj Finance, Tech Mahindra, Kotak Mahindra Bank, and Power Grid experienced declines. Despite this volatility, the overall market direction remained positive.
Midcap and Smallcap Indices also Rally
In the broader market, investors showed interest in midcap and smallcap stocks. The Nifty Midcap and Smallcap indices registered a rise of approximately 0.5%. The India VIX fell by over 3%, indicating a decrease in market fear and a willingness among investors to take on risk.
Across-the-Board Buying
The market rally was not confined to a few companies; almost all sectors performed positively. The Nifty PSU Bank index saw a 1% increase, while the real estate, financial services, metal, and IT sectors strengthened by up to 0.7%. This suggests a b foundation for the market rally and sustained confidence across various sectors.
Supportive Global Signals
International developments also influenced the Indian market's trajectory. China's central bank, the People's Bank of China (PBoC), maintained its one-year loan prime rate at 3% and its five-year rate at 3.5%, signaling stability. Japan's May core inflation rate was 3.7%, exceeding forecasts, but the annual inflation rate eased to 3.5%. Asian markets showed a mixed response—Japan's Nikkei closed 0.27% higher, while South Korea's Kospi and Australia's ASX 200 were slightly weaker.
Crude Oil and Precious Metals Decline
In the commodity market, Brent crude prices fell by over 2%, reaching $76.9 per barrel. Gold and silver prices also softened. This indicates a shift in investor preference towards the equity market and a withdrawal of funds from safe-haven assets.
Limited Impact of Geopolitical Events
Tensions persist between Israel and Iran, with former US President Donald Trump expressing support for Israel's military actions. However, the impact of this geopolitical tension on the Indian market currently appears limited. Increased volatility could occur if the situation escalates.
Support from Overseas Markets
US markets were closed on Thursday for Juneteenth. However, US stock futures showed a slight decline during Asian trading hours. In the UK, the Bank of England held interest rates steady at 4.25% by a 6-3 vote, suggesting that central banks globally are attempting to balance inflation and growth.
GIFT Nifty Hints at a Flat Opening
Around 7:30 AM, GIFT Nifty futures traded at 24,792, down 11 points. This suggested a potentially flat opening for the domestic market, but domestic indicators and sectoral support led to the subsequent rally.
