on Friday, Sensex The trade ended at least 1,227.27 points higher at 61,795.04, up 1,181.34 points, or 1.95%, to an intraday high of 61,840.97 in trading hours. Nifty 50 edged higher by over 334 points with an intraday high of 18,362.30, however, ended with a gain of 321.50 points or 1.78% at 18,349.70.
shares Like HDFC, HDFC Bank, Infosys, Tech Mahindra, HCL Tech, TCS, Wipro, Tata Steel and Reliance Industries (RIL) were among the best performers. IT stocks outperformed their peers, while banking, metals, capital goods and consumer durables stocks posted substantial gains.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market joined the global race as markets across the world cheered on lower-than-expected US inflation data. Dollar Treasury yields declined as investors evaluated the possibility of a less hawkish rate hike by the Fed. Lower Treasury yield will help improve FII inflows. The domestic market rally was led by IT stocks as bearish fears eased and HDFC twins turned post-merger.”
Meanwhile, the rupee strengthened nearly 2% against the US dollar, marking its biggest gain in 4 years. The rupee also erased 81 points against the greenback. The local unit closed at 80.7950 per dollar on Friday, while the US currency saw its steepest one-day fall since 2009 and its worst week since March 2020.
Also, as per NSE data, FIIs made heavy buying 3,958.23 crore in Indian equities on Friday alone. Overall, FIIs jumped this week 6,329.63 crore in domestic equity.
US inflation eased for the fourth straight month in October at 7.7%, the lowest level since January this year.
Considering the above, on BSE, the market capitalization of the listed firms was approx. 2,84,56,532.03 crore by the end of Friday. it’s more than 2,97,309.92 crore as compared to Thursday’s valuation of approx. 2,81,59,222.11 crore. The data is taken from BSE.
Thus, investors’ wealth rose more on Friday alone. 2.97 lakh crores. On a weekly basis (November 7 to November 11), the property increased more and more 1.56 lakh crores as compared to last week’s Friday print where valuation was approx. 2,83,00,422.29 crore (November 4).
Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said, “The performance of Q2 FY23 has been ahead of expectations, driven by bank results. Net FPI inflows have been positive this week. Now, as of now We are entering the last few days. In the results season, the market focus will gradually shift towards global and domestic macro data points, including inflation, central bank action, among others.”
Further, Amol Athawale, Vice President of Technical Research, Kotak Securities, said, “Traders across the world are now expecting that with inflation levels cooling down, the US Fed may maintain status quo on rate hikes in its December meeting. before the trend is reversed. If the reading shows further moderation.”
On Nifty 50, Athawade said, “Nifty not only crossed the short term resistance of 18300 but closed above the same which is broadly positive. Bullish candle and range breakout formation on the Daily and Weekly charts is indicating a further upside from the current levels. For traders, 18200-18150 will act as a key support zone. If the index trades above this, it can move up to 18500-18600. However, below 18150, the uptrend will weaken.”
Further, Mitul Shah, Head of Research at Reliance Securities said, “Currency volatility, higher commodity, and logistics cost, and geo-political issues were the major deterrents of growth. However, we expected recovery in 3QFY23 due to softening of commodities.” We expect prices and monetary easing by central banks that are likely to boost demand. Markets in the US rose on lower-than-expected inflation data. The Federal Reserve slowed the pace of its interest rate hikes in the near-term India is likely to witness a multi-year economic up-cycle led by strong macro and various government initiatives.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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