The Indian stock market witnessed a robust rally on Friday, with the Sensex closing at a record high of 84,544.31, surging 1,359.51 points or 1.63 per cent.

The Nifty 50 also made significant gains, ending at 25,790.95, up by 375.15 points or 1.48 per cent. The market’s upward trajectory was largely attributed to the recent interest rate cut by the US Federal Reserve, which sparked optimism among investors and triggered a positive sentiment across global markets.

Mahindra & Mahindra (M&M) led the gainers on the NSE, with a remarkable 5.32 per cent increase, followed by ICICI Bank at 4.47 per cent and JSW Steel at 3.69 per cent.

Other top performers included Larsen & Toubro (L&T) and Coal India, gaining 2.97 per cent and 2.84 per cent, respectively. On the flip side, Grasim Industries experienced the steepest decline of 2.33 per cent, while State Bank of India (SBI) and NTPC saw modest losses of 0.69 per cent and 0.22 per cent, respectively.

Among the Sensex stocks, M&M continued its strong performance, rising 5.57 per cent to reach 2,952.25. JSW Steel and ICICI Bank also posted significant gains of 3.85 per cent and 3.77 per cent respectively.

Bharti Airtel showed a notable increase of 2.84 per cent, closing at 1,712.30. However, SBI emerged as the biggest loser in the Sensex pack, dropping 1.07 per cent to 781.90. Other Sensex stocks that saw declines included IndusInd Bank (-0.33 per cent), TCS (-0.27 per cent), and Bajaj Finance (-0.07 per cent).

The broader market echoed the positive sentiment, with 2,442 stocks advancing and 1,501 declining on the BSE. Notably, 265 stocks hit their 52-week highs, while only 45 touched their 52-week lows. The market breadth remained positive, with 301 stocks hitting the upper circuit and 257 touching the lower circuit.

Sector-wise performance was mixed, with the Nifty Bank index gaining 1.42 per cent to close at 53,793.20, and the Nifty Financial Services index rising 1.58 per cent to end at 24,789.20. The Nifty Midcap Select index showed a modest gain of 0.19 per cent, closing at 13,112.50.

Ajit Mishra, SVP of Research at Religare Broking Ltd, commented on the market’s performance, saying, “Markets edged higher amid volatility, gaining nearly one and a half percent, largely tracking global trends. The first half saw a positive tone, though volatility in the latter half kept traders on edge.”

He added, “The market continues to closely follow global cues, especially from the US, whose recent strength enabled Nifty to break through the 25,550 resistance level. Attention is now focused on the next milestone of 26,000.”

The rally was further fueled by developments in the commodities market. Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, provided insights on gold and crude oil prices.

Regarding gold, Chainwala noted, “Comex gold prices surged to fresh all-time high of $2,614.60, driven by the Federal Reserve’s aggressive 50 bps rate cut.” On crude oil, she stated, “WTI crude oil prices surged above $72 per barrel, driven by a significant Federal Reserve rate cut and escalating tensions in the Middle East.”

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, provided his insights on the market’s technical aspects, stating, “The short term trend of Nifty is sharply positive. Having surged up in one session on Friday, there is a possibility of consolidation/breather pattern in the short term, before moving up further.”

He added, “Next upside targets as per Fibonacci extension to be watched around 26250. Immediate support is at 25650.”

Ameya Ranadive, Sr Technical Analyst at StoxBox, highlighted the performance of specific sectors and stocks, noting, “While broader indices also rose, all sectoral indices finished lower.

In stock-specific movements, ITD Cementation India Ltd. shares surged to the 20 per cent upper circuit limit after reports emerged that the Adani Group is the top contender to acquire a stake in the company.” Ranadive also mentioned the rebound in defense stocks, with Cochin Shipyard Ltd. leading the way with a 10 per cent gain.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, attributed the market’s strong performance to the US interest rate cut, stating, “Markets were on a roll on the back of across-the-board buying as the US interest rate cut has triggered a downward spiral in both Indian and US bond yields, making India’s financial assets more attractive and could result in robust dollar flows going ahead.”

He added, “While intra-day volatility would continue amid geo-political tensions and global uncertainty, strong domestic investors’ appetite for equity assets will keep Indian markets on a strong footing in the medium to long term.”

According to Shrey Jain Founder and CEO SAS Online, “This rally was driven by robust performances in the banking, automotive, and energy sectors. Specifically, the Sensex increased by 1,389 points (1.7 per cent), closing at 84,574, while the Nifty rose by 375 points (1.5 per cent), finishing at 25,790. Looking ahead, the Nifty is poised to approach the 25,800 mark in the coming weeks. Given this outlook, a strategy of buying on dips appears to be prudent, especially as strong support has been established at last week’s low of 24,750.”

Amol Athawale, VP-Technical Research at Kotak Securities, provided a weekly market wrap, saying, “In the last week, the benchmark indices continued positive momentum, the Nifty ends 1.71 percent higher while the Sensex was up by 1653 points.”

He further added, “Technically, bullish candle on weekly charts and higher bottom formation on daily charts suggesting further upside from the current levels. We are of the view that, as long as market is trading above 25500/82700 the breakout texture is likely to continue.”

Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) were net sellers, recording a net outflow of ₹2,547.53 crore across BSE, NSE, and MSEI in the capital market segment. Meanwhile, Domestic Institutional Investors (DIIs) contributed a net inflow of ₹2,012.86 crore during the same period.

Among other categories on the BSE, client investors reported a net outflow of ₹13.16 crore, while proprietary traders posted a net inflow of ₹271.70 crore.

As the market closed on a high note, investors and analysts alike remain cautiously optimistic about the future trajectory of Indian equities, keeping a close eye on global cues and domestic economic indicators.

The recent rally, fueled by the US interest rate cut and positive global sentiment, has set the stage for potential further gains in the coming weeks, subject to geopolitical developments and economic data releases.

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