Nifty Closes Near All-time High After Spectacular Recovery, IT Gains
Nifty recovers more than 2,000 points or nearly 10 per cent after the 04 June bloodbath, while the weekly gain stands at 3.37 per cent
Dalal Street drama for this week closed on a cheerful note after the market continued to display robust recovery in the Friday trading session. Benchmark indices, Nifty and Sensex closed nearly their all-time high. Besides, the Reserve Bank of India kept the rates steady which triggered a rally across all the IT stocks.
The National Stock Exchange (NSE) Nifty 50 index ended 2.05 per cent higher at 23.290, whereas the S&P Bombay Stock Exchange (BSE) Sensex also settled higher at 76,700 levels with 1,626 points or 2.17 per cent gains on the closing bell.
Notably, Nifty recovered more than 2,000 points or nearly 10 per cent after the 04 June bloodbath, while the weekly gain stood at 3.37 per cent.
Nifty Moves
In the Nifty50 index, 48 stocks advanced with gains while merely 2 stocks ended in the red territory which included SBI Life and Tata Consumer with the loss of 1.18 per cent and 0.37 per cent respectively.
Conversely, the winners included Mahindra & Mahindra and Wipro with more than 5 per cent gain. Tech Mahindra, Infosys and Ultratech cement gained more than 4 per cent, while Bharti Airtel, Tata Steel, Bajaj Finance and several others gained more than 3 per cent in the session.
Analyst Note
“Domestic markets shrugged off the weak global cues, as investors cheered the RBI's higher growth forecast for FY25 in its credit policy announcement which propelled Sensex to a fresh all-time high above the 76,000 mark on massive broad-based buying support. Also, the arrival of monsoon rains on time and expectations of its even spread across the country also raised hopes of softening inflation going ahead,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
With the election uncertainty now over and the NDA party most likely to form the government, investors are hopeful that the action will now shift to reforms and the upcoming Union Budget, added Tapse.
Sectoral Movement
In terms of sectoral performance, oftenly muted Nifty IT displayed a massive rally with 3.37 per cent gain, followed by 2.56 per cent gain in Nifty Auto.
Metal also gained more than 2 per cent, while FMCG, Pharma, Banks and Financial climbed more than 1 per cent. Overall, all the indices showcased positive trade.
The more domestically focussed indices, mid-cap and small-cap also recovered in the session. Mid cap gained 1.49 per cent, whereas Small cap climbed 2.31 per cent.
