Sensex, Nifty surge to record highs; bullish run continues in stock market
Mumbai, December 12: The stock market started off on a positive note on Friday, continuing its bullish run in Mumbai. Both the Sensex and Nifty opened strong, showcasing an upward trend that was buoyed by favourable global market conditions and expectations of a supportive monetary policy from the US Federal Reserve.
At the opening bell, the Sensex surged by 261.43 points to reach 70,764.99, while the Nifty 50 commenced 83.30 points higher at 21,266.00. Of the Nifty companies, 40 witnessed gains, while 10 faced declines.
Leading the upward charge among Nifty firms were Hindalco, JSW Steel, UPL, Tata Steel, and Infosys. However, HDFC Life, Nestle India, BPCL, Kotak Bank, and Apollo Hospitals experienced losses.
The positive momentum carried through the trading day, resulting in record highs for both the Sensex and Nifty. The Sensex closed at 70,514.20, gaining 929.60 points or 1.34 per cent, while the Nifty 50 surged by 256.35 points or 1.23 per cent, finishing at 21,182.70.
Varun Aggarwal, founder and managing director of Profit Idea, attributed this upward trajectory to the dovish stance of the Federal Reserve, suggesting potential rate cuts in 2024, alongside declining US bond yields. Additionally, upgraded GDP forecasts for India and reduced global oil prices have contributed favorably to this market growth.
While November saw a slight uptick in retail inflation, nearly 49.3 per cent of items in the inflation basket fall within the central bank's tolerance range of 2-6 per cent.
The Indian market expects significant inflows due to FTSE-related activities, particularly around HDFC Bank, on December 15. FTSE's rebalancing will infuse approximately USD 500 million into the Indian market, with a substantial portion anticipated to flow into HDFC Bank.
Aggarwal highlighted the Asian market's four-month high, driven by declining dollar and US yields but cautioned that potential resistance to rate cuts from European central banks might impact global pivot expectations.
Amidst these developments, the Indian rupee rebounded from all-time lows against the US dollar, closing at 83.30 on Thursday, marking a gain of 10 paise. This currency recovery, coupled with other positive market indicators, further strengthens the optimistic outlook for India's stock market.
- ANI
