Indian equity benchmark indices BSE Sensex and Nifty 50 climbed to fresh record highs on Friday, after opening higher, led by overnight gains on the Wall Street. The global cues. IT stocks remained weak. Analysts expect Nifty to trade within the 25,000-26,000 range.
Sensex soared 1,017.63 points, or 1.22 per cent, to 84,202.43. It hit a record high of 84,240.50 today. Thirty of 30 index stocks were trading in the black. Nifty was trading 250.75 points, or 0.99 per cent, higher at 25,666.55. It hit a high of record high of 25,692.70. The combined market capitalization of all BSE-listed stocks shot up by Rs 4 lakh crore to Rs 469.5 lakh crore.
Data released overnight showed the US jobless claims hit the lowest point since May and hinted at a strong labour market, brushing off concerns related to slowdown in the US market. The S&P500 index and Dow Jones Industrial Averages soared up to 1.7 per cent overnight. In Asia, markets in Hong Kong, Japan and Korea also jumped. Domestic stocks moved in tandem with the global rally.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said: “The Dow and S&P 500 setting yet another record highs overnight is indicative of the strength of this ongoing global bull run, led by the mother market US. The good labour market data from the US indicates that the labour market is only slowing, not deteriorating. With inflation under control, this means the US is set for a soft landing under a declining interest rate scenario. This is positive for global equity markets,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
FII Inflows
FPI inflows to India are likely to accelerate if the Fed easing cycle triggers a risk-on rally in the US, Emkay Global said in its latest strategy note. This foreign flows may create enough momentum to protect against downsides, even if valuations cap the upside for the broader stock market, the brokerage added.
The domestic brokerage said FPIs have largely missed the bus so far, but they are now willing to look through elevated valuations and increase their India exposure. Data available with NSDL suggests FPIs bought Rs 33,281 worth stocks in September so far.
“FPI net inflows in India for 2024 stand at Rs 42,300 crore (0.2 per cent of the Nifty m-cap) compared with the Rs 1.7 lakh crore (1.2 per cent of the Nifty m-cap) in 2023, indicating that there is room for acceleration going forward,” the brokerage said.
Metals Shine
Unlike Thursday’s trading session, the broader market also participated with the smallcap index rallying 0.5%. Among bluechips JSW Steel shares rallied over 3% while other metal stocks like Hindalco and Tata Steel were also trading 2% higher.
The rally in metals came after global brokerage Macquarie released a bullish note on the sector citing resilient domestic fundamentals and easing inputs costs. While raising JSW Steel to outperform rating, it has hiked target prices of Coal India, Tata Steel and Jindal Steel and Power.
Nifty Technical
Nifty is expected to trade within the 25,000-26,000 range, with key resistance at 25,500, analysts say.
“With strong market momentum, Nifty looks primed for gains. Stock picks include Titan (CMP ₹3,781) with a target of ₹3,951, and Oberoi Realty and Naukri, both offering bullish potential on intraday weakness,” said Prashanth Tapse of Mehta Equities.
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