Dhanteras, recognized as a significant day in Indian culture, boosted the Indian stock markets, allowing key indices to continue their growth on Friday despite declines in global markets. The Sensex rose by 1,718.01 points to reach 81,028.02, while Nifty increased by 493.75 points, reaching 25,030.35.
Market Developments
The overall market indices faced a mixed situation by the end of the day, with Nifty 100 emerging as the main winner, growing by over 1%. Among various sectors, financial and banking stocks led the way, with both indices in these sectors rising by more than 2%. Additionally, consumer goods and pharmaceutical stocks also saw significant growth.
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In the list of major winners on the BSE, companies such as M&M, ICICI Bank, Titan, HDFC Bank, and Axis Bank topped the charts. On the other hand, PowerGrid was recognized as the biggest loser. Similarly, on the NSE, comparable companies were among the winners, while TMPV and Eicher Motors were identified as the main losers.
Market Analysis and Influencing Factors
Ajit Mishra, Senior Vice President of Research at Religare Broking, stated: "Markets continued their growth for the seventh consecutive session, rising by over 1.5% despite mixed global signals. After starting the day with minor fluctuations, Nifty gradually strengthened, reaching its closest daily level at 25,030. The Sensex also managed to return to the 80,000 level, indicating its resilience against severe declines in Asian markets and global tech stocks."
Mishra pointed to continuous buying by foreign institutional investors, which has supported domestic markets and recorded significant purchases in the previous session. Additionally, a notable decline in global tech stocks and concerns related to AI-related investments have impacted Asian markets. However, Indian IT stocks have remained relatively resilient.
According to Mishra, "After this seven-session growth period, some consolidations and rotations among various sectors could benefit the market's health." He also emphasized the importance of keeping Nifty above the 24,500 level, adding that this could help maintain a positive trend and move towards the 25,200 to 25,500 range.
Vapin Dixit, a market analyst, believes that the Indian stock market's ability to maintain a positive trend despite global weaknesses is a promising sign. However, he also warned that this recovery has not yet fully broadened, with large-cap stocks showing relatively stronger performance while mid and small-cap stocks are under selling pressure.
He also pointed to falling oil prices, a strengthening rupee, and the return of foreign investment as positive factors for India's macroeconomic stability. Improved yields and more rational valuations have also contributed to the attractiveness of Indian stocks.
Finally, Dixit noted: "Nifty has seen a strong rebound and recovery of its key moving averages, indicating a significant improvement in technical structure in the short to medium term. Currently, Nifty at 25,000 appears to have reached a high level, and profit sales are expected to occur next week. However, any decline will present a buying opportunity in Nifty, and support levels of 24,700 to 24,800 should be monitored."
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