It was another day of gains for the equity benchmark indices Sensex and Nifty on Friday as they mirrored a global market rally on the back of rising hopes that the US Federal Reserve will cut interest rates next week to bolster the US economy.
Optimism over continuation of negotiations of India-US trade talks has also fuelled a rally in markets for the fifth day in a row.
The 30-share BSE Sensex jumped 355.97 points or 0.44 per cent to settle at 81,904.70. During the day, it had surged 444.12 points or 0.54 per cent to 81,992.85.
The 50-share NSE Nifty rallied 108.50 points or 0.43 per cent to 25,114, registering its eighth straight day of uptrend.
Trade analysts said besides a renewed global optimism over a potential Fed rate cut, reports that the European Union will not place higher tariffs on India for buying Russian oil have further improved investor sentiment.
Also Read: Wall Street rallies as Fed interest rate cut looks more certain
"The domestic market closed at a three-week high, supported by renewed global optimism over a potential Fed rate cut. Sentiments improved further on reports that the EU may reject US tariff proposals on India for buying Russian oil. Also, progress in US-India trade talks is expected to keep the positive momentum intact in the near term,” said Vinod Nair, Head of Research, Geojit Investments Limited, adding that the defense sector outperformed, aided by the Indian procurement authorities beginning negotiations for six next-generation conventional submarines, which further helped in the markets’ gains.
On the weekly front, the BSE benchmark jumped 1,193.94 points or 1.47 per cent, and the Nifty climbed 373 points or 1.50 per cent. In eight trading days, the Nifty has jumped 534.4 points or 2.17 per cent.
From the Sensex firms, Bharat Electronics, Bajaj Finance, Bajaj Finserv, Axis Bank, Maruti and Tata Motors were among the gainers.
However, Eternal, Hindustan Unilever, Trent and Titan were the major laggards.
The BSE smallcap gauge climbed 0.27 per cent, and the midcap went up marginally by 0.09 per cent.
Among sectoral indices, capital goods jumped 1.76 per cent, industrials (1.28 per cent), telecommunication (0.88 per cent), BSE utilities (0.53 per cent), power (0.44 per cent) and BSE Focused IT (0.36 per cent).
Consumer Discretionary, FMCG, consumer durables, oil & gas were the laggards.
Attributing a mild decline in crude oil prices that further supported risk appetite, Gaurav Garg, Research Analyst, Lemonn Markets Desk, said positive trends in Asian equities is expected to sustain.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng settled in positive territory, while Shanghai's SSE Composite index ended lower.
Markets in Europe were trading mostly lower but the US markets ended higher on Thursday.
"Markets extended their winning streak on Friday, gaining nearly half a per cent, in line with favourable global and domestic cues. The up move was supported by a mix of triggers. Corporate developments, such as Infosys’ ₹18,000 crore mega buyback, boosted sentiment in IT blue chips.
Strong inflows from domestic institutional investors offset continued selling by foreign portfolio investors, while positive cues from global markets further strengthened momentum," Ajit Mishra, SVP, Research, Religare Broking Ltd, said.
Foreign institutional investors (FIIs) offloaded equities worth ₹3,472.37 crore on Thursday, while domestic institutional investors (DIIs) bought stocks worth ₹4,045.54 crore, according to exchange data.
Global oil benchmark Brent crude climbed 0.47 per cent to USD 66.72 a barrel.
On Thursday, the Sensex climbed 123.58 points or 0.15 per cent to settle at 81,548.73, its fourth day of rally. The Nifty rose by 32.40 points or 0.13 per cent to settle at a nearly three-week high of 25,005.50, marking its seventh consecutive day of gains.
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