Indian equity benchmarks witnessed a powerful rally on Friday, closing the trading session with substantial gains. The surge was fueled by a combination of aggressive buying from foreign portfolio investors and an optimistic trend in global markets.
Market Performance: A Day of Robust Gains
The 30-share BSE Sensex jumped by a significant 638 points, or 0.75 percent, to settle at 85,779.27. During the day, it even touched an intraday high of 85,889.84. Similarly, the broader NSE Nifty climbed 191 points, or 0.74 percent, to finish at 26,108.75, decisively closing above the psychologically important 26,000 mark.
This positive momentum was broad-based, with several key index heavyweights contributing to the rise. Major gainers on the Sensex included UltraTech Cement, Mahindra & Mahindra, Bajaj Finance, Larsen & Toubro, and HDFC Bank. On the sectoral front, realty, capital goods, industrials, and consumer durables were among the top performers.
The Driving Forces Behind the Rally
The primary catalyst for Friday's upswing was the strong influx of foreign capital. Foreign Institutional Investors (FIIs) turned net buyers in the capital markets on Thursday, purchasing shares worth Rs 6,850.76 crore, as per exchange data. This shift in sentiment provided a major boost to market confidence.
Furthermore, supportive global cues played a crucial role. Most Asian markets, including Seoul, Tokyo, and Shanghai, ended in the green. European markets were also trading positively during the afternoon. This global optimism, combined with domestic buying interest, created a perfect environment for the indices to scale new heights.
Broader Market Outlook and Expert Views
The bullish sentiment permeated the broader market as well. The BSE midcap gauge rose by 1.02 percent, and the smallcap index advanced by 0.92 percent. Analysts pointed to the renewed FII interest as a key turning point, suggesting that if the trend continues, it could lead to further market expansion.
Market experts highlighted that the rally was a reflection of improving global risk appetite and positive domestic economic indicators. The consistent buying in key sectors indicates underlying strength in the market structure. However, they also advise investors to remain cautious and watch for global developments and domestic corporate earnings for future direction.
In the currency market, the Indian rupee appreciated by 2 paise to close at 83.43 (provisional) against the US dollar, supported by the positive equity market sentiment and a weaker American currency overseas.
