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Sensex, Nifty touch record highs on robust Q3 GDP number | Business News


Benchmark equity indices Sensex and Nifty rallied over 1.6 per cent to scale new highs on Friday as better-than-expected Q3 GDP growth improved investors’ sentiments.

The BSE’s 30-share Sensex zoomed 1,245.05 points, or 1.72 per cent, to end at a lifetime high of 73,745.35. The broader Nifty 50 jumped 355.95 points, or 1.62 per cent to close at a record high of 22,338.75.

The stock market crossed the all-time high of 22300/73400 due to strong domestic cues. Nifty gained 355 points and Sensex gained 1245 points from the previous close, which was unexpected for both the bulls and the bears, said Shrikant Chouhan, Head Equity Research, Kotak Securities.

“As the general election draws closer, stellar economic growth data raised confidence among investors for a pre-election rally,” said Vinod Nair, Head of Research, Geojit Financial Services.

India’s GDP surged to a six-quarter high of 8.4 per cent in Q3 FY24, pushing the growth rate for 2023-24 to 7.6 per cent as against the earlier estimate of 7.3 per cent, the data released by the NSO showed on Thursday. The Q3 GDP growth number was much higher than the market expectation of around 6.5 to 6.6 per cent.

According to Nomura, growth is likely to remain resilient, especially under the environment of stable global economic outlook. However, there are headwinds, including the impact of the general election code of conduct on public capex support, patchy recovery in private capex, weak state of consumption, and ebbing terms of trade advantage for corporates as input costs rise.

“We project GDP growth at 6.1 per cent in 2024 (vs 7.7 per cent in 2023) and 6.2 per cent in FY25 (vs 7.6 per cent in FY24), below the RBI’s expectation of 7 per cent,” Nomura said in a research report.

During the day, Bank Nifty provided great support in pulling the market beyond its all-time high, rising 2.5 per cent, the biggest gain in several sessions. The index closed at 47,286.9 compared to the previous close of 46,120.9.

Defensive sectors like IT and pharma remained weak, while metals, BFSI and capital goods outperformed.

Among the NSE firms, the companies that gained the most include Tata Steel Ltd, Larsen & Toubro Ltd, JSW Steel Ltd, Titan Company Ltd and IndusInd Bank. Reliance Industries Ltd (RIL) gained 1.9 per cent to close at Rs 2,977 apiece on the NSE.

“Now that the market has crossed 22,300 and 73,400 levels, the key levels to watch are 22,500/74,000 or 22,600/74,300. Conversely, 22,200/73,000 and 22,100/72,700 would be the crucial supports. It is advisable to have a strategy to buy on dips,” said Kotak Securities’ Chouhan.

Bank-Nifty could face a big hurdle at 47,400, but if it breaks quickly, it can reach 48,000 or 48,500 levels. Based on technical analysis, it is on the verge of hitting the all-time high level of 48,637. On the other hand, if the index drops, 47,000 and 46,750 would offer support, he said.

On Friday, foreign portfolio investors (FPIs) bought Rs 128.94 crore worth of domestic shares on a net basis, while domestic institutional investors (DIIS) net purchased Rs 3,814.53 crore of local shares, according to the BSE’s provisional data.



Read More: Sensex, Nifty touch record highs on robust Q3 GDP number | Business News

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