Image Credits-The Economic Times
The Indian stock market commenced the trading day on a positive note, with the benchmark Sensex surging by 761.75 points, or 0.97%, to reach 79,647.97 in early trade on friday. The upward momentum reflects investor optimism bolstered by favorable global cues, strong corporate earnings, and renewed interest from foreign institutional investors (FIIs).
Market analysts attribute this rally to a combination of factors, including easing inflation concerns and robust performance in the banking, technology, and energy sectors. The global equity markets’ positive sentiment also played a significant role, with investors betting on a potential pause in interest rate hikes by central banks across major economies.
Among the top gainers were heavyweight stocks from the banking and IT sectors. HDFC Bank, ICICI Bank, and Infosys led the charge, contributing significantly to the Sensex’s gains. Energy majors like Reliance Industries also saw a strong uptrend, driven by expectations of higher crude oil prices and improving refining margins.
“The market is currently riding on strong fundamentals and a positive outlook on the domestic economy. The recent inflow of foreign capital, coupled with strong quarterly earnings from major companies, has instilled confidence among investors,” said a senior market analyst from a leading brokerage firm.
However, market experts caution that volatility may persist as investors keep a close watch on upcoming economic data, particularly inflation figures and global geopolitical developments. The performance of the U.S. markets and any major policy announcements from the Federal Reserve will also be crucial in determining the market’s direction in the coming days.
The broader Nifty index mirrored the Sensex’s gains, trading above the 23,800 mark, reflecting a broad-based buying interest across sectors. As trading continues, market participants will be closely monitoring the developments to gauge the sustainability of this rally.