Markets rise boosted by RIL retail arm stake sale
The BSE closed 1.34% higher at 41,893.06, while the NSE surged 1.18% to 12,263.55
Rising for the fifth straight session, equity benchmark Sensex rallied 553 points and closed at a nearly 10-month high on Friday, tracking gains in index-heavyweights Reliance Industries and HDFC twins amid largely positive global market sentiment.
Reliance shares jumped 3.8% on Friday after the company secured a $1.3-billion investment in its retail business from Saudi Arabia’s wealth fund, taking the total amount raised for Reliance Retail Ventures Ltd to more than $3 billion.
The 30-share BSE index ended 552.90 points or 1.34% higher at 41,893.06, while the broader NSE Nifty surged 143.25 points or 1.18% to 12,263.55. On January 14, Sensex had closed at a record peak of 41,952.63. Reliance Industries was the top gainer in the Sensex pack, followed by Bajaj Finserv, IndusInd Bank, HDFC twins and Kotak Bank. Meanwhile, Maruti, Bharti Airtel, Asian Paints, UltraTech Cement and Nestle India were among the laggards.
According to Hemant Kanawala, head–equity, Kotak Mahindra Life Insurance, Indian markets rallied in sync with its global peers, putting to the backburner the uncertainties in the US presidential election. They delivered a broad-based performance, with both Nifty and Nifty midcap indices returning 1.5% over the last week.
Sectorally, BSE energy, bankex, finance, realty and consumer durables indices rallied up to 3.16%, while telecom, healthcare and FMCG fell up to 0.92%. Broader midcap and smallcap indices rose up to 0.54%. During the week, Sensex soared 2,278.99 points or 5.75%, while Nifty advanced 621.15 points or 5.33%. “Positive global sentiment from the US election, expectation of Fed open market operation and improving economic activities have added optimism in the market,” said Vinod Nair, Head of Research at Geojit Financial Services.
Markets have surged consistently over the week, and Indian benchmark indices have continued their strong momentum supported by a good set of quarterly numbers and strong foreign fund inflow, he noted.
Democratic leader Joe Biden appeared to be a step away from winning the US presidential election as the latest count of votes from a handful of battleground states indicated that the re-election chances of incumbent Republican President Donald Trump are getting slim by the hour.