Indian stock market benchmark indices BSE Sensex and NSE Nifty 50 closed on a positive note on Friday. A resurgence of foreign fund inflows and BFSI stocks gaining big led to the market posting its fifth consecutive rally.
Sensex gained as much as 0.9 per cent during the day and crossed the 77,000-mark, after closing on a 557-point gain at 76,905.51. During the day, it surged 693.88 points or 0.9 per cent to 77,041.94. Nifty closed at 23,350.40, up around 693 points, after posting a day-high jump of about 0.9 per cent.
Despite the positive environment, Infosys, Tata Steel, Mahindra & Mahindra, Titan, and Bajaj Finserv saw red among the 30-pack bluechip stocks, while NTPC, Bajaj Finance, Axis Bank, Kotak Mahindra Bank, ICICI Bank, L&T, Tata Motors, and Zomato gained big.
The recent optimism could be attributed to the US Fed hinting at two possible rate cuts in the years, paired with expectations of a second repo rate cut by the Reserve Bank of India in April.
Foreign institutional investors (FIIs) have been buying equities more this week, as opposed to the incessant selling Indian markets saw over the past six months, hinting at a consistent recovery path.
“The anticipated reduction in risk-free rates, coupled with a correction in the dollar index, is facilitating fund flows back to EMs,” said Vinod Nair of Geojit Financial Services.
The Indian currency also followed suit, with the rupee appreciating for the sixth straight session. It closed 36 paise higher at a provisional level of 86 against the US dollar on Friday. Overall, the rupee appreciated by ₹1.23 in six sessions. However, experts caution against crude oil offsetting further gains.
