Sensex and Nifty, the two key equity benchmarks, on Friday surged by nearly 2 per cent, propelled by heavy buying in IT, metal, and financial stocks amid a rally in global markets after lower-than-expected US inflation data. A strong rupee against the US dollar and unabated foreign capital inflows further bolstered sentiment, according to traders. Easing US inflation raised investor hopes that the US Federal Reserve might slow down the pace of interest rate hikes.
The BSE Sensex zoomed 1,181 points (1.95 per cent) to settle at 61,795. During the day, it witnessed a high of 61,840 and a low of 61,311. On the other hand, the broader NSE Nifty rallied 321 points (1.78 per cent) to finish at 18,350.
#ABPStockMarketWatch | Indian equity benchmarks closed in green on Wednesday
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On the 30-share Sensex platform, HDFC emerged as the lead gainer, rising by 5.84 per cent, followed by HDFC Bank, Infosys, Tech Mahindra, HCL Tech, TCS, Wipro, Tata Steel, and Reliance Industries. On the flip side, M&M, SBI, Kotak Bank, Dr Reddy’s, ICICI Bank, and NTPC were among the losers.
In the broader market, the BSE Smallcap gauge gained 0.15 per cent and the Midcap index rose 0.33 per cent.
In the previous session on Thursday, the 30-share BSE benchmark ended 420 points (0.69 per cent) lower at 60,614. The broader NSE Nifty too fell 129 points (0.71 per cent) to end at 18,028.
Financial markets rallied after the US consumer price index eased to 7.4 per cent in October from 8.2 per cent in September. Markets were on tenterhooks after the US Federal Reserve indicated more interest rate tightening to fight inflation. The current US inflation data points to an early end of the interest rate hike cycle.
In Asian markets, Hong Kong’s Hang Seng gained 7.70 per cent while the Nikkei in Tokyo surged 2.98 per cent. In Seoul, the Kospi rose 3.37 per cent. The Shanghai Composite index 1.69 rallied per cent. Equity exchanges in Europe were also trading in the green in the afternoon session. Stock exchanges in the US ended with significant gains on Thursday.
Meanwhile, international oil benchmark Brent crude gained 2.37 per cent to $95.89 per barrel.
Foreign institutional investors (FIIs) remained net buyers in the Indian capital market on Thursday, as they bought shares worth Rs 36.06 crore, as per exchange data.
Meanwhile, the rupee appreciated by 62 paise to close at 80.78 (provisional) against the US dollar on Friday, as moderating US CPI data coupled with a fall in the dollar index boosted investor sentiments.
At the interbank foreign exchange market, the local unit opened at 80.76 and touched an intra-day high of 80.58 and a low of 80.99 against the greenback. The local unit finally settled at 80.78, registering a rise of 62 paise over its previous close of 81.40.