Sensex gains 1,000 points: Key factors behind Friday’s bull run

Benchmark indices Sensex and Nifty rallied more than 1 per cent on the last day of fiscal 2022-23. This is in line with firm trends in the global markets and heavy buying in index major Reliance Industries.

The Nifty 50 index was up 1.60 per cent at 17,354.10 in Friday's trade. The S&P BSE Sensex rose 1.73 per cent to 58,961.51.

Fresh foreign fund inflows also added to the positive momentum in the equity market.

Among the Sensex firms, Reliance Industries emerged as the biggest gainer as it jumped over 3 per cent. HCL Technologies, ICICI Bank, Nestle, Tech Mahindra, Infosys, Power Grid, NTPC and Axis Bank were the other major winners.

Asian Paints and ITC were the laggards.

"The April series is off to a good start. The relative stability of the world markets is one of the main causes. In addition, FIIs began some cash market buying and some short covering in the F&O market. But, given that they began the April series with 91% of their positions in index futures short, there is still room for a significant short-covering move," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

“Due to the rise in interest rates in the USA, the Nasdaq was the global equity market leader in the previous decline. But, it has already recovered 20 per cent from its bottom, signalling the conclusion of the bear market. It also suggests that the market anticipates an impending peak in interest rates in the USA,” Meena said.

“Historically, the equity market has performed well in April. Technically speaking, Nifty has established a short-term bottom around 16800 levels, and it successfully crossed its 20-DMA of 17220 during today's trading session, which is encouraging for the bulls. The 200-DMA of 17450 is an immediate barrier; above it, we can anticipate a move toward the 17600 level,” the analyst added.

Indian equity markets were closed on Thursday on account of ‘Ram Navami’.

The 30-share BSE benchmark advanced 346.37 points or 0.60 per cent to finish at 57,960.09 on Wednesday. The Nifty climbed 129 points or 0.76 per cent to end at 17,080.70.

Meanwhile, global oil benchmark Brent crude dipped 0.24 per cent to $79.08 per barrel.

Foreign Portfolio Investors (FPIs) were net buyers on Wednesday as they bought equities worth ₹1,245.39 crore, as per the exchange data.