Indian Markets Soar: Sensex Crosses 84,000, Nifty Above 25,600 Amidst Renewed Optimism
The Indian equity markets delivered a powerful performance on Friday, marking their fourth consecutive session of robust gains. This thrilling rally saw the benchmark Sensex breach the momentous 84,000-mark for the first time in nine months, igniting widespread investor confidence. Simultaneously, the broader Nifty surged past the 25,600 level, underscoring the market’s current bullish momentum.
Behind the Surge: Geopolitical Calm and Global Shifts
What fueled this remarkable upward trajectory? A confluence of positive global and domestic factors played a pivotal role. Easing geopolitical tensions, particularly in the Middle East, significantly calmed investor nerves. This stability, coupled with a notable decline in international crude oil prices, created a fertile ground for renewed buying interest, especially from foreign investors who flocked back to Indian shores.
A Closer Look at the Stellar Performance
The 30-share BSE Sensex wrapped up the day with a gain of 0.36 percent, adding 303.03 points to close at 84,058.9. This puts it tantalizingly close to its previous high of 84,266.29, recorded way back on October 1, 2024. Not to be outdone, the broader Nifty Index also climbed an impressive 0.35 percent, rising 88.8 points to settle at 25,637.8, showcasing broad-based market strength.
Expert Voices and Inflows: Fueling the Rally
Market analysts are keenly observing these developments. “Indian equity benchmarks staged a sharp rebound this week, reversing early volatility to close on a firm footing,” noted Vinod Nair, Head of Research at Geojit Investments Ltd. He highlighted the critical role of de-escalating Middle East tensions and the steep decline in crude oil prices in buoying sentiment across virtually all sectors.
The data speaks volumes: Foreign Portfolio Investors (FPIs) injected a substantial Rs 13,991.4 crore into domestic equities over just the last two trading sessions. In contrast, Domestic Institutional Investors (DIIs) showed some profit-booking, selling Rs 784.16 crore worth of shares on a net basis.
Global Tailwinds: The Federal Reserve’s Dovish Shift
Adding another layer of optimism, global risk assets experienced a rally as a noticeable shift in tone from several US Federal Reserve governors signaled a potentially more dovish stance on monetary policy. This has intensified speculation around a potential interest rate cut by the Fed as early as July, a move that would generally boost investor appetite for riskier assets worldwide, including emerging markets like India.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd., commented on the improved risk sentiment. “The recent geopolitical stability has improved risk sentiment, as seen in the broad-based market participation,” he stated. Mishra also pointed to positive developments regarding potential trade agreements that could further strengthen this bullish bias, advocating a “buy on dips” strategy with a focus on selective stock picking.
Beyond the Giants: Mid and Small Caps Shine Bright
While the frontline indices grabbed headlines, the broader markets truly stole the show. The Nifty Midcap 100 and Smallcap 100 indices extended their impressive winning streak to six consecutive sessions. Over the week, the midcap segment surged by more than 2 percent, while the smallcap universe delivered an outsized return, jumping over 4 percent, reflecting a powerful resurgence in investor interest across the market spectrum.
Sectoral Spotlight: Energy, Infra, and Financials Lead the Charge
The market’s breadth remained overwhelmingly positive, with most NSE indices closing in the green. Nifty Oil & Gas emerged as a top performer, surging by 1.19 percent. Nifty Infrastructure and Nifty Energy also saw significant climbs of 0.89 percent and 1 percent, respectively. Sectors like PSU Banks, Pharma, Metals, and Media also posted healthy gains, ranging between 0.4 percent and 0.55 percent, showcasing widespread participation in the rally.
Among the individual stars on Friday, Jio Financial Services led the pack with a 3.87 percent gain, followed closely by Asian Paints (3.15 percent), Apollo Hospitals (2.94 percent), and IndusInd Bank (2.89 percent), indicating strength in diverse segments of the economy.
The Road Ahead: Nifty’s Next Milestones
Looking forward, analysts remain optimistic. Bajaj Broking Market, in a recent note, projected that the Nifty would maintain its positive bias and head towards the 25,900-26,000 levels in the coming week, citing the measuring implication of the previous week’s trading range. They also emphasized that the positive market breadth, characterized by broad-based sectoral participation, adds significant credibility to the ongoing uptrend. The note further suggested that the upper band of the recent consolidation range, specifically 25,100-25,200, is now likely to reverse its role and act as a crucial support level in the weeks ahead, providing a strong foundation for future gains.
