Sensex, Nifty end close to life highs on strong domestic cues

Indian stocks closed at record closing levels on Friday, just 60 points shy of life highs, with the consumer goods and infrastructure sectors leading the rally.

Sentiment rose on strong domestic signals and hopes of an end to the continuing cycle of rising interest rates with The US Federal Reserve maintains stable interest rates.

healthy stimuli

Ministry of Finance meeting reports Moody’s Investors Services and Potential Rating Upgrade It also helped the overall optimism. Moody’s currently has a India’s Baa3 ratingthe lowest investment rating, with a stable outlook.

“Indian stocks are set to reach all-time highs on the back of a strong rally in global markets supported by healthy local signals,” said Siddhartha Kimka, Head of Retail Research at Motilal Oswal Financial Services.

This is the fourth consecutive weekly gain by the benchmarks. The Sensex rose 466.95 points, or 0.7 percent, to end at 63,384.58 points, and the Nifty50 ended 137.90 points, or 0.7 percent, at 18,826 points, which is just below 18,887.60 points, its highest level on December 1 of last year.

Friday’s trading started on a flat note with Nifty opening with a gap of 35 pips higher, to later settle into a narrow range trading during the first half of the day. However, saw the second half Index increase to the highest level during the day at 18,864.70.

Devarsh Vakil, Vice President Retail Research, HDFC Securities, said the market is gradually approaching a new high on the back of steady inflows from foreign portfolio investors, mutual funds and insurance as corporate earnings in the last quarter were better than expected and going forward, it will improve further. In view of the strong demand. He added that the dollar is weak after the Federal Reserve’s decision to pause the interest rate hike cycle, which will make foreign investments in emerging markets, especially in India, more attractive.

Sectoral winners

The top three Nifty gainers were HDFC Life (5.9 per cent), SBI Life (3.2 per cent) and Bajaj Finserv (2.4 per cent). Insurance stocks rose after remarks from the Association of Insurance Brokers at an event that the sector would rise 25 percent annually through 2030, along with positive comments from industry officials.

The Nifty FMCG and Nifty Infrastructure indices achieved higher levels of life supported by receding inflation numbers and expectations of a recovery in demand in rural areas. The main gainers in this sector were ITC, Britannia and Emami. In the run-up to next year’s elections, the government’s drive toward infrastructure spending is expected to increase.

Nifty Bank also rose more than 1 percent led by strong gains in IDFC First Bank, Punjab National Bank, Bank of Baroda and Bandhan Bank. The rise was broad-based, and the Nifty Midcap index closed 0.7 percent higher, while the small-cap index closed 0.8 percent higher.

Although the US Federal Reserve signaled a push to hike rates, Amol Athawale of Kotak Securities said markets ignored negative global sentiment and instead focused on domestic signals.

“We think that at the current stage, there could be a consolidation in the next few sessions which gives investors time to get involved after the rally across the indices,” said Riches Vanara, technical and derivatives analyst at StoxBox.