Nifty closes at fresh high; Sensex rallies 308 points
Sensex ended the day at 51,422.88, while Nifty surged to close at 15,435.65
MUMBAI: Equity benchmark Sensex rallied 308 points and NSE Nifty hit a fresh record on Friday, tracking gains in index heavyweights Reliance Industries, HDFC twins and Kotak Bank amid positive cues from global markets.w
Further, decline in daily Covid-19 caseload too bolstered investor sentiment, analysts said.
The 30-share BSE index ended 307.66 points or 0.60% higher at 51,422.88. The broader NSE Nifty surged 97.80 points or 0.64% to close at its fresh peak of 15,435.65.
Reliance Industries was the top gainer in the Sensex pack, soaring nearly 6%, followed by M&M, HDFC twins, Kotak Bank, ITC and Bharti Airtel.
On the other hand, Sun Pharma, Bajaj Finserv, ICICI Bank and Dr Reddy’s were among the laggards.
“Domestic equities remained upbeat and recorded fresh high as improved prospects of economy recovery and strong 4QFY21 earnings continued to bolster investors’ sentiments. A strong rebound in Reliance
Industries was a key driving force,” said Binod Modi, Head Strategy at Reliance Securities.
Sustained market rally added over ₹3 trillion in investors’ wealth this week, with the market capitalisation of Bse-listed companies crossing the landmark $3 trillion during the week, he noted.
Further, a sharp drop in daily Covid-19 caseload in second wave (remaining below 2 lakhs despite higher testing) and improvement in recovery rates have emboldened investors in the last couple of days, he said.
Meanwhile, on Wednesday, the Sensex crossed the 51,000 mark for the first time in nearly three months.
Investor sentiment turned more bullish following a steady drop in daily count of cases and improvement in recovery rates of those affected by the infection.
This has raised hopes of easing curbs in several states and a faster-than-expected recovery in Asia’s third-largest economy from the turbulence caused by the pandemic.
The BSE Sensex climbed 379.99 points or 0.75% to close at 51,017.52. The 30-stock index last closed above the 51,000mark on 10 March.
Binod Modi, head of strategy at Reliance Securities said, “Domestic equities remained upbeat as improved visibility about economic recovery from second quarter of FY22 continued to lift investors’ sentiments. Further, robust Q4FY21 earnings and favourable commentaries from managements also aided to lift sentiments. Going forward, likely announcement of phased withdrawal of state level lockdowns in coming weeks and recovery in economic activities can potentially aid market to sustain rally in the near to medium term.”
Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo ended on a positive note, while Shanghai was in the red.
Stock exchanges in Europe were also trading with gains in mid-session deals.