Benchmark indices rose over a per cent to fresh highs on Friday, led by a rally in information technology (IT) stocks.
The Nifty climbed 247 points, or 1.14 per cent, to 21894, while the Sensex rose 847 points to 72568, extending the winning streak for the fourth consecutive session.
Cash market volumes on the NSE ended at ₹1.04-lakh crore. Broad market indices rose less than the Nifty even as the focus remained on large-cap IT and banking stocks. The advance decline ratio remained positive at 1.09:1.
The Nifty IT index jumped 5.14 per cent, logging its best session since October 8, 2020, to hit a 21-month high. Infosys surged 7.9 per cent, while TCS was up 3.9 per cent after their third-quarter revenue growth beat expectations, indicating that the overall demand situation had not deteriorated further. Coforge and Tech Mahindra were up 5.7 per cent and 4.7 per cent, respectively.
“Contrary to expectations of weak Q3 results from the IT sector, better-than-expected results along with green shoots of recovery in the IT sector on the back of an improved outlook for BFSI in FY25 positively influenced domestic market sentiments,” said Vinod Nair, Head of Research, Geojit Financial Services.
The rupee rose 11 paise on Friday to settle at 82.90 against the dollar. A 19 per cent surge in India’s net direct tax collection also helped the cause of domestic equities. Retail inflation inched marginally higher to 5.7 per cent y-o-y in December from 5.6 per cent y-o-y in November.
Foreign portfolio investors sold shares worth ₹340 crore on Friday, even as domestic investors bought shares worth ₹2,911 crore.
“In the near term, investors’ trade positions will be more inclined towards the upcoming result season; the overall forecast for earnings growth remains optimistic, projecting a double-digit figure,” said Nair.
Most Asian markets ended in red as China’s annual exports dropped for the first time in seven years. Japan’s Nikkei 225 bucked the trend to gain 1.5 per cent and extend its record rally. European markets were trading firmly in the green as investors digested fresh UK economic data.
Oil surged amid escalating tensions in the Middle East and with the Brent Oil Futures ruling at $80 per barrel.
The domestic market will take cues from Q3 results, India’s inflation, and US PPI data in the coming week.