Sensex Today: Indian shares advanced on Friday aided by broad gains across sectors, with benchmarks nearing record high levels, after economic data from the US boosted bets that Fed may be less hawkish than expected.
The S&P BSE Sensex rallied to a high of 63,520 and was mere 63 points shy from its record high of 63,583. The BSE benchmark eventually ended with a gain of 467 points at 63,385.
Similarly, the NSE Nifty 50 hit a high of 18,864.70 and was just 22 points away from its summit of 18,887.60 registered on December 01, 2022. The Nifty finally settled 138 points higher at 18,826.
Twelve of the 13 major sectoral indexes rose. Broader indexes also extended gains, with the midcap index jumping to a new record high and smallcap index hitting fresh 52-week high levels.
Among individual stocks, Ashok Leyland rose nearly 4% to a nine-month high after analysts saw benefits from the automaker’s expansion plans, focus on margin improvement and pricing discipline.
Titagarh Wagons and Ramkrishna Forgings gained over 3% and 7%, respectively, after a consortium of both companies won contract from Ministry of Railways worth 122.27 billion rupees.
Piramal Pharma jumped over 5% after global brokerage Jefferies reiterated “buy” citing scope for margin expansion in fiscal year 2024.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “There are two factors – one positive and the other negative- that are impacting the market trend now. The positive factor is the favourable global cues. The mother market US has shrugged off the Fed’s ‘hawkish pause’ and has moved forward. S&P 500 up by 7.7% during the last one month is a reflection of a resilient market. The negative factor is the weakness of Bank Nifty, which is preventing the Nifty from moving to a new record high. It is important to understand the fact that the weakness in Bank Nifty is primarily due to mutual fund selling in HDFC Bank to avoid the 10% ceiling in HDFC Bank after the merger of HDFC Ltd in HDFC Bank due in July. The weakness is due to technical and not fundamental issues. The weakness in HDFC Bank is a buying opportunity for investors with a medium term time horizon.”
Global Cues
Tokyo shares opened lower on Friday despite rallies on Wall Street, with traders eyeing the Bank of Japan’s policy announcement later in the day.
The S&P 500 and Nasdaq surged on Thursday to close at their highest in 14 months, as investors cheered economic data that fueled bets that the U.S. Federal Reserve is nearing the end of its aggressive interest-rate hike campaign.
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