Sensex, Nifty hit all-time highs on firm global equities, foreign fund inflows

Equity benchmark indices Sensex and Nifty closed at fresh lifetime highs on Friday following gains in banking, financial and capital goods stocks amid a firm trend in the global market.

A strengthening rupee and foreign capital inflows further bolstered sentiment, traders said.

The 30-share BSE index zoomed 466.95 points or 0.74% to settle at a record closing high of 63,384.58. During the day, it rallied 602.73 points or 0.95% to 63,520.36.

The index scaled its earlier lifetime high of 63,284.19 on December 1 last year.

The NSE Nifty climbed 137.90 points or 0.74% to end at its lifetime peak of 18,826. Its previous record peak was 18,812.50.

On a weekly basis, the BSE benchmark jumped 758.95 points or 1.21%, and the Nifty climbed 262.6 points or 1.41%.

“Markets surged strongly on Friday and inched closer to the record high, tracking firm global cues. After the firm start, the Nifty index hovered in a narrow band in the first half. However, a sharp surge in the latter half helped the index to test 18,864.70 but it finally settled at 18,826 levels.

“Recovery in banking and financials combined with buying in FMCG, pharma and energy majors largely aided the rebound. Besides, the continued buying in midcap and smallcap space further added to the positivity,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd, said.

The buoyancy in the global markets, especially the US, is helping the index to maintain a bullish tone amid mixed domestic cues, Mishra added.

Buying in index major Reliance Industries and HDFC twins also helped the markets to rebound.

Bajaj Finserv was the biggest gainer in the Sensex pack, rising 2.21%, followed by Titan, ITC, Kotak Mahindra Bank, HDFC Bank, HDFC, Bajaj Finance, IndusInd Bank, ICICI Bank, HUL, Reliance Industries and Mahindra & Mahindra.

Wipro, Tata Consultancy Services, Power Grid and Tech Mahindra were the laggards.

In the broader market, the BSE smallcap gauge climbed 0.76% and the midcap index jumped 0.71%.

Among the indices, financial services climbed 1.21%, bankex jumped 1.03%, capital goods (1.02%), industrials (0.91%), FMCG (0.80%), consumer durables (0.78%) and consumer discretionary (0.74%).

IT, oil & gas, realty and teck were the laggards.

“Global stocks were headed for the best week in more than 9 weeks after a series of Central Bank decisions, lifted by bets that the Federal Reserve will soon end its tightening cycle and China will introduce fresh stimulus measures,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended in the green.

Equity markets in Europe were trading with gains. The U.S. markets ended significantly higher on Thursday.

“The domestic market rebounded with strong buying in banking, pharma, and consumer stocks, along with positive cues from global markets. The U.S. market’s optimism was bolstered by better-than-expected retail sales, reflecting the robustness of the economy.

“Furthermore, jobless claims remain elevated, and a decline in import prices raised hopes for a prolonged pause in interest rate hikes by the Fed, contradicting their announcement of potential future rate hikes made the previous day,” said Vinod Nair, Head of Research at Geojit Financial Services.

The rupee rebounded by 34 paise to close at a month high against the U.S. dollar on Friday.

Global oil benchmark Brent crude dipped 0.62% to $75.20 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth ₹3,085.51 crore on Thursday, according to exchange data.

“We reiterate our positive view but suggest limiting positions citing intermediate choppiness. Instead of waiting for a new high in the index, we feel participants should maintain their focus on identifying stock-specific trading opportunities,” Mr. Mishra said.