Stock market today: BSE Sensex and Nifty50, the Indian stock market indices, surged in trade on Friday. The stock market witnessed a strong surge today as the BSE Sensex soared over 1,200 points and ended the day at 73,745.35. NSE Nifty50 also hit a milestone by crossing the 22,300 mark for the first time.
While BSE Sensex closed 1.72% or 1,245.05 points up, Nifty50 closed at 22,338.75, up 356 points or 1.62%.
Why BSE Sensex, Nifty50 rallied today:
Several factors contributed to this remarkable rally in the stock market.
Firstly, the Indian economy showed robust growth in the October-December quarter, with a growth rate of 8.4%, surpassing expectations. This was primarily driven by strong performance in the manufacturing and construction sectors.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the positive impact of the impressive GDP growth number on the market. He stated, “The better-than-expected Q3 GDP growth number of 8.4% is the main factor influencing the market today. These impressive GDP numbers provide fundamental support to the bull market.”
Furthermore, global markets also played a role in boosting investor sentiment. Wall Street closed higher, with the S&P 500 and Nasdaq Composite reaching record highs. The in-line US inflation reading kept intact the likelihood of a June interest rate cut, which further bolstered market confidence. Japan’s Nikkei also hit a new record high, while markets in other parts of Asia remained cautious due to uncertainties surrounding China’s economic outlook.
Analysts noted that the in-line US inflation reading contributed to the positive sentiment in the market, as it increased the possibility of a rate cut by the Federal Reserve in June.
Foreign investors displayed strong buying interest, with net purchases of shares worth Rs 3,568 crore on Thursday. In contrast, domestic institutional investors sold shares worth Rs 230 crore. In February, foreign investors bought Indian equities worth Rs 5,107 crore, following significant outflows of over Rs 25,000 crore in the previous month. Over the past decade, foreign investors have predominantly been buyers of domestic stocks in March.
