The Sensex and Nifty, leading equity benchmark indices, soared to unprecedented heights on Friday, buoyed by robust GDP figures and fresh influxes of foreign capital.
This surge in the equity markets was further propelled by a rally in global markets, contributing to the overall positive sentiment.
In late afternoon trading, the 30-share BSE Sensex surged by an impressive 1,139.04 points, reaching an all-time high of 73,639.34. Likewise, the Nifty surged by 335.85 points, hitting a new peak of 22,318.65.
Notable performers among the Sensex constituents included Tata Steel, which saw a remarkable rise of over 5%, along with JSW Steel, posting gains of nearly 4%. Other major gainers included Larsen & Toubro, Titan, ICICI Bank, and Tata Motors.
However, HCL Technologies, Infosys, and Tech Mahindra lagged behind in performance.
The Indian economy demonstrated better-than-expected growth, expanding by 8.4% in the final quarter of 2023, marking the fastest pace in eighteen months. This growth surpassed the 7.6% rate observed in the previous three years, contributing to an upward revision of the estimate for the current fiscal year (April 2023 to March 2024) to 7.6%, as per data released by the National Statistical Office (NSO) on Thursday.
Commenting on the market dynamics, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the impressive GDP figures provide fundamental support to the bullish market sentiment.
Furthermore, India's manufacturing sector witnessed growth, reaching a five-month high in February. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose from 56.5 in January to 56.9 in February, indicating the strongest improvement in sectoral health since September 2023. This growth was underpinned by increased factory production and sales, bolstered by both domestic and international demand.
In Asian markets, Tokyo, Shanghai, and Hong Kong also experienced gains, while the US markets closed on a positive note on Thursday.
Foreign Institutional Investors (FIIs) turned into net buyers on Thursday, injecting Rs 3,568.11 crore into equities, according to exchange data.
The BSE benchmark surged by 195.42 points, settling at 72,500.30 on Thursday, while the Nifty gained 31.65 points, closing at 21,982.80.
Meanwhile, global oil benchmark Brent crude rose by 0.33%, reaching USD 82.19 a barrel.
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