Domestic stock markets Friday staged a strong rally amid strong global cues in the wake of clarity on the Biden administration taking over in the US by January 20, the path for which has been now cleared by the US Congress. With expectations of economic recovery and good corporate results adding to the buoyancy, the Sensex soared 689 points, or 1.43 per cent, to 48,782.51 and the Nifty50 jumped 210 points, or 1.48 per cent, to 14,347.25 on sustained buying support.
Foreign portfolio investors pumped in over Rs 6,000 crore into domestic stocks on Friday, signalling that inflows are set to continue in the coming weeks. If foreign inflows – which were at a record Rs 1,70,000 crore in 2020 — continue at this level, the Sensex is likely to cross the 50,000 mark in the coming days, said an analyst.
Global cues help too
Tracking optimistic global cues, the benchmark started the day on a buoyant note and settled with healthy gains. Almost all the sectoral indices participated in the move with IT, auto and oil & gas witnessing noticeable traction. The broader market too followed suit and ended higher in the range of 0.7-0.9 per cent.
According to Vinod Nair, head of research at Geojit Financial services, the rally led by IT and auto stocks guided the domestic market to discover new highs which was due to improved quarterly outlook. The expectations of TCS quarterly result — which was released later in the day — helped in cheering investors’ mood. “Support from strong global indices also helped in raising domestic market sentiments. The official certification of Biden’s presidency by the US Congress and easing of the political unrest as Trump promised a smooth transition of power, have created an upbeat movement in the western market. The focus of Indian markets has shifted to third quarter earnings, ignoring high valuations,” Nair said.
Tracking optimistic global cues, the benchmark started the day on a buoyant note and settled with healthy gains. Almost all the sectoral indices participated in the move with IT, auto and oil & gas witnessing noticeable traction. The broader market too followed the suit and ended higher in the range of 0.7-0.9 per cent.
Asian shares rose to record highs on Friday with Japan’s Nikkei hitting a three-decade peak as investors looked beyond rising coronavirus cases and political unrest in the US to focus on hopes for an economic recovery later in the year. Most Asian equities were set to notch their biggest weekly gains in many months on Friday. European markets traded higher, too.
Meanwhile, the rupee staged a smart recovery from the day’s lowest level to end 7 paise higher at 73.24 against the US dollar on Friday, tracking the rally in domestic equities.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines