Indian equity markets witnessed a robust rally on November 22, with the BSE Sensex climbing 1,117.85 points (1.45%) to close at 78,273.64, and the NSE Nifty advancing 338.15 points (1.45%) to 23,688.05. The rally was fueled by gains in banking, IT, and energy stocks, alongside favorable global cues and strong US labor market data.
Key Drivers of the Market Rally:
- IT Sector Strength: The Nifty IT index gained nearly 2% following upbeat US labor market data, indicating potential economic recovery in the region. Top gainers included MphasiS and Wipro, up over 2%.
- Blue-Chip Buying: Value buying was observed in heavyweights like Reliance Industries (+1%), ICICI Bank, and SBI, lifting overall market sentiment. SBI recovered from a 5% drop on November 21 to close 3.29% higher today.
- Global Support: Positive trends in global markets bolstered domestic equities. Japan’s Nikkei rose 1%, supported by cooling inflation, while US indices like the Dow Jones Industrial Average saw a 1.1% gain.
- Adani Stock Recovery: Adani Group stocks rebounded after steep losses the previous day, with Adani Enterprises jumping 4.57% and Adani Ports up 3.11%, aiding broader market sentiment.
Sectoral and Stock Highlights:
- PSU Banks: The Nifty PSU Bank index surged 2.47%, bouncing back from a significant dip in the prior session.
- Top Gainers: Reliance Industries, Tata Motors, Bajaj Finance, and IndusInd Bank led gains within the Sensex.
- Adani Group Stocks: Significant recoveries were noted after yesterday’s losses amid US bribery allegations.
Institutional Activity:
- Foreign Institutional Investors (FIIs) continued their selling streak, offloading ₹5,320.68 crore worth of equities. Meanwhile, Domestic Institutional Investors (DIIs) purchased shares worth ₹4,200.16 crore, cushioning the fall.
Expert Insight:
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that “despite relentless FII selling, the market correction remains limited, signaling a resilient undertone driven by domestic factors.”
The rally reflects investor optimism, bolstered by strong domestic demand, value buying, and positive global developments. Markets are expected to maintain momentum, with upcoming data releases and global cues likely to steer sentiment further.
