Stock Market Today: Sensex up nearly 1,000 points, Nifty 50 tops 21,400-mark led by IT, metals
- Stock Market Today: Nifty 50 index and BSE Sensex rose about 2.3 per cent in the week, extending gains for the seventh consecutive week, marking their longest winning run since January 2018.
Stock Market Today: The domestic benchmark indices, Sensex and Nifty 50 continued their bull run and posted their longest weekly winning streak in six years on Friday, December 15, on strong global cues after the US Federal Reserve signalled the end of its tightening cycle and raised expectations of a rate cut in March 2024.
Sensex on Friday breached the 71,000 mark during the session, as domestic macroeconomic data and easing concerns over the US economic growth bolstered market sentiment. The surge in domestic equities follows Fed Chair Jerome Powell's acknowledgment of the risks of delaying rate cuts on Wednesday, bolstering expectations of a 25 basis points (bps) rate cut by March 2024 and fueling a rally across global stock markets.
The high weightage information technology (IT) index gained about 2 per cent and was among the top sectoral gainers. IT companies, drawing a significant share of their revenue from the US, jumped 7.16 per cent this week, logging their best week in 26 months. The metal index climbed 5 per cent, led by an increase in global metal prices as the US dollar came under pressure following the Fed's dovish commentary on future rate trajectory.
Rising for the third straight session, the 30-share BSE Sensex jumped 969.55 points or 1.37 per cent to settle at its record closing high of 71,483.75. During the day, it surged 1,091.56 points or 1.54 per cent to 71,605.76, logging its all-time intra-day high level.
The Nifty 50 climbed 273.95 points or 1.29 per cent to settle at its new closing high of 21,456.65. During the day, it zoomed 309.6 points or 1.46 per cent to hit its record intra-day peak of 21,492.30.
In the broader market, the BSE smallcap gauge climbed 0.58 per cent and the midcap index dipped 0.07 per cent. The Nifty Midcap 100 touched record high, hitting a 52-week high-mark of 45,814.45, and closed up 0.11 per cent at 45,586.55 level, while the Nifty Smallcap 100 ended 0.71 per cent higher.
As many as 1,969 stocks advanced, while 1,801 declined and 118 remained unchanged. The NSE Nifty 50 index and BSE Sensex rose about 2.3 per cent in the week, extending gains for the seventh consecutive week, marking their longest winning run since January 2018. Investors' wealth has surged by ₹8,11,802.11 crore in three days. The market capitalisation (Mcap) of BSE-listed firms hit a fresh record high of ₹3,57,87,999.80 crore on Friday.
The Indian rupee jumped 33 paise against the US dollar on Friday, posting its biggest single-day gain in more than eight months amid heavy dollar inflows. The local currency ended at 83.00 a dollar, up 0.4 per cent on the day, as compared to its previous close of 83.33, registering its best single-day performance since April 5.
Top Nifty 50 Gainers Today
IT majors including HCL Technologies (5.59 per cent), Tata Consultancy Services (TCS) (5.56 per cent), and Infosys (5 per cent) emerged as the top gainers in the Nifty 50 pack. Infosys, India's second-largest IT company, advanced 5.13 per cent on the day and 5.85 per cent on the week, driven by the easing global rate outlook.
Top Nifty 50 Laggards Today
Shares of HDFC Life Insurance (-1.83 per cent), Nestle India (-1.54 per cent), and Bharti Airtel (-1.09 per cent) were the top losers in the Nifty 50 index. Nestle India declined after HSBC downgraded the stock, citing high valuations.
Sectoral Indices Today
Among the indices, IT jumped 4.41 per cent, tech rallied 3.64 per cent, metal (1.78 per cent), oil & gas (1.43 per cent), commodities (1.38 per cent), energy (1.15 per cent) and bank (0.79 per cent). FMCG, auto, realty and services were the laggards.
Expert's Views on Markets
"The buoyancy continued in the market as investors were expecting the clouds over US economic growth to recede by H2CY24 and that the economy would achieve a soft landing aided by normalization in monetary policy. The USD/INR witnessed a steep fall on account of the prospects of interest rates being cut next year. The IT index outperformed expectations of a rise in demand in the US economy,'' said Vinod Nair, Head of Research at Geojit Financial Services.
Ajit Mishra, SVP - Technical Research, Religare Broking Ltd said, ‘’We could see a breather in the index after the recent surge and expect to hold the 21,000-21,200 zone in case of any dip. Much on the expected lines, banking and IT majors are among the top contributors in the present leg of up move and we believe their outperformance could continue. Participants should align their trades accordingly and avoid contrarian positions.''
Technical Views on Nifty 50
"The Nifty's upward momentum persists with the bulls maintaining control in the market. Achieving a new all-time high, the index has marked its seventh consecutive weekly gain,'' said Rupak De, Senior Technical Analyst at LKP Securities.
‘’The prevailing sentiment appears strongly in favor of the bulls, as indicated by the absence of any reversal signals on the technical charts. Resistance is observed at 21,500, while a potential further rally in the Nifty could occur upon breaching this level. Support is currently positioned at 21,300,'' added De.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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