Mumbai: The Indian stock markets experienced a robust surge on Friday, with both indices recording gains exceeding 1 percent following a rally across the Nifty IT and Nifty Realty sectors.
The Nifty 50 index saw a significant increase of 295 points, or 1.22 percent, reaching a new high of 24,445 points, while the Sensex index advanced by 953 points, or 1.24 percent, to stand at 80,075 points at the moment this report was filed.
The Nifty IT and Nifty Realty indices saw gains exceeding 2 percent, with other major sectoral indices, including the Nifty Auto and Nifty Media, also recording increases of more than 1 percent.
Stock market analysts attribute the rally in Indian stocks to the broader global market upturn. The leading performers of the day in the Nifty 50 category included Wipro, which experienced a gain of over 3 percent, and LTIM, which recorded a gain of 2.99 percent. Additionally, Tech Mahindra, Mahindra & Mahindra, and Apollo Hospitals also secured a place among the top gainers of the day.
Both benchmark indices, Nifty 50 and Sensex, showed positive momentum at the start of the session. The Nifty 50 index saw a 0.79 percent increase, or 191 points, to open at 24,334.85, while the BSE Sensex index advanced by 646 points, or 0.82 percent, to open at 79,751.90 points.
The global markets have exhibited a smart turnaround from the sell-off on August 5, which was sparked by concerns over a US recession and the unwinding of Yen carry trades.
The latest data on US inflation and unemployment suggests no signs of an impending economic recession.
"Strong global signals are favorable for the Indian markets. Among the three global risks at the start of the week, all have significantly diminished. Diplomacy has averted a potential attack on Israel by Iran. The latest US CPI and PPI figures indicate a deflationary trend, and the lower numbers of unemployment benefit claims have improved the prospects for a soft landing in the US economy," stated Ajay Bagga, an expert in Banking and Markets.
Bagga further noted, "For India, the primary concern remains the persistent outflow of foreign portfolio investments (FPI), which has removed nearly USD 2.8 billion from the cash equities segment this month. The markets are currently in a consolidation phase and may be poised for another attempt at achieving all-time high levels in the coming week."
