Stock market today: BSE Sensex and Nifty50, the Indian benchmark equity indices, surged in trade on Friday. Nifty50 reached a new record high on Friday, thanks to strong buying in Reliance Industries and IT stocks.
The index hit a peak of 22,126.80 in the early afternoon before closing at 21,853.80, a gain of 156.35 points or 0.72%.
The BSE Sensex also saw a surge, rising by as much as 1,440 points during the day before settling at 72,086, up by 440 points or 0.61%.
The bullish sentiment was evident with 38 stocks ending in positive territory and only 12 in the red. Bharat Petroleum Corporation, Power Grid Corporation, Oil and Natural Gas Commission, Adani Ports and Special Economic Zone, and NTPC were among the top gainers, while Eicher Motors, Axis Bank, HDFC Life Insurance Company, HDFC Bank, and Hindustan Unilever were the top losers, according to an ET report.
Nifty Bank also experienced a significant increase, trading over 1% or 490 points higher at 46,680.75. The top gainer in this sector was ICICI Bank, followed by Punjab National Bank.
Except for Nifty Consumer Durables, all other sectoral indices were in the green. Nifty IT was trading at 37,057.70, a rise of 1.43%, while PSU banks also saw gains.
One 97 Communications, the parent company of Paytm, witnessed a 20% drop in its shares for the second consecutive day after the Reserve Bank of India (RBI) restricted Paytm Payments Bank from offering banking services due to non-compliance.
Why BSE Sensex, Nifty50 rallied today:
1. Union Budget 2024: The market reacted to the Union Budget announcements, as Finance Minister Nirmala Sitharaman provided more clarity on the government’s fiscal plans. The budget emphasized fiscal prudence, aiming to reduce the fiscal deficit to 4.5% by 2026. The government also indicated lower borrowing in the next financial year.2. Global markets rise: US markets closed with significant gains, which had a positive impact on global markets. The Dow 30 ended at 38,519.80, up by 369.54 or 0.97%, while the S&P 500 settled at 4,906.19, a rise of 60.54 points or 1.25%. The Nasdaq Composite also saw a jump of over 197.63 points or 1.30% to end at 15,361.60.
Asian markets also followed the positive trend, with Japan’s Nikkei 225 surging by 281.11 points or 0.78% and Hong Kong’s Hang Seng up by 92 or 0.60%. However, China’s Shanghai Composite was in the red, declining by 0.72%.
3. Reliance Industries (RIL) shares surge: Reliance Industries, a heavyweight in the index, played a significant role in the market’s upward movement. The stock reached its fresh 52-week high of Rs 2,930.60, gaining 2.5% in early morning trade.
According to Sameet Chavan, Head Research, Technical and Derivative at Angel One, the Nifty has been experiencing alternating up and down days for the seventh consecutive day, indicating uncertainty. Chavan suggests that a breakout above or below the 21,400-21,850 range will determine the next significant trend. A breach below 21,400 could lead to further decline, while surpassing 21,850 may push Nifty towards the 22,000-22,100 range.
Chavan advises traders to remain cautious and observe the intra-day trend before making any bold moves.
