Equity benchmark indices Sensex and Nifty surged by over 1 per cent on Friday amid the rally in global markets. While BSE Sensex was up more than 1,000 points reclaiming the 80,000 point mark, Nifty rose by over 260 points, with buying seen across sectors.
The broader indices too were trading in green, with Nifty Midcap 100 up by over 750 points. All the sectors were trading in green with IT, auto, realty, metal, oil & gas, media, and capital goods rising over 1 per cent, at the time of filing this report.
The rally in global markets, along with buying in IT stocks and Reliance Industries are causing positive sentiments in the markets. In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading higher.
Wipro, Mahindra & Mahindra, Tata Motors, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Reliance Industries, ICICI Bank, JSW Steel, Infosys and IndusInd Bank were leading the Sensex rally. Wipro rose over 3 per cent to intraday high of Rs 510.45 from the previous close of Rs 495.
"Globally stock markets have turned around smartly from the August 5th sell off triggered by US recession fears and the unwinding of the yen carry trade. Latest data on US inflation and unemployment relief do not indicate an economy tipping into recession. On the other hand, the 2.9 per cent annual inflation number and slightly softening labour markets set the stage for a Fed rate cut in September, which the market is pencilling in now," said V.K. Vijayakumar, chief investment strategist, Geojit Financial Services.
Meanwhile, in a strategy report, Anand Rathi Shares and Stock Brokers expressed confidence in Nifty 50 giving nearly 13 per cent returns in the next 12 months. “India is a bright spot among emerging economies, with strong GDP growth, a positive fiscal outlook, and modest inflation,” the report said.
