Sensex Closes 964 Points Higher, What's Fueled Rally In Stock Market Today

Domestic equity benchmark indices ended sharply higher on Friday, with the BSE's 30-share index 'Sensex' climbing 964.58 points and the Nifty reaching the 24,330 level. After a subdued ending in the last session, Sensex bounced back 964.58 points, or 1.25 per cent, to settle at 78,151.45. During the day, it surged 1,095.68 points, or 1.41 per cent, to 78,282.55. The Nifty50, 50-share index of NSE, climbed 261.55 points, or 1.09 per cent, to end at 24,334.30.

What Fueled the Rally in the Stock Market Today

The rally was driven by buying in blue-chip stock Reliance Industries. Buying momentum in banking and IT stocks also drove the momentum.

The IT stock rally was driven after Tech Mahindra jumped 3.91 per cent after it reported a 28.4 per cent rise in consolidated net profit for the June quarter to Rs 1,465 crore.

Expert's Opinion

"There is a shift in market momentum, with strong traction moving toward large-cap stocks, led by the IT and banking sectors. This is supported by optimism around business updates and Q1 earnings expectations," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The trend appears to be driven largely by domestic institutional investors rotating out of expensive mid and small-cap stocks and into more attractively valued large caps that offer a better risk-reward profile, he added.

"Indian equity markets ended the week on a strong note, extending their recovery as broad-based buying in heavyweight banking, financial, and IT stocks helped benchmark indices outperform weak global cues. Investor sentiment remained resilient despite persistent concerns over elevated AI valuations, ongoing geopolitical tensions in the Middle East, and heightened volatility in global markets," Ponmudi R, CEO of Enrich Money, said.

Expectations of healthy quarterly earnings from index heavyweights, including Reliance Industries and leading private sector banks, further supported the positive momentum, he added.

International Market

In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index closed significantly lower. South Korean markets closed lower on Friday.

European markets were quoted in negative territory in mid-session contracts.

Top Gainers And Losers

From the Sensex basket, Kotak Mahindra Bank, TCS, Reliance, Hindustan Unilever, Mahindra & Mahindra, Axis Bank, ICICI Bank and Bajaj Finance were also among the winners.

Sun Pharma, Trent, Bharti Airtel and UltraTech Cement were the top losers.