The Indian stock market witnessed a powerful rally today as the BSE Sensex surged over 800 points, closing at 78,450, while the Nifty 50 crossed the 23,800 mark. The rally was primarily driven by strong buying in IT and banking heavyweights, with foreign institutional investors (FIIs) turning net buyers after weeks of selling.
Key Market Highlights
The benchmark indices opened on a positive note and continued their upward trajectory throughout the trading session. The broader market also participated in the rally, with the Nifty Midcap 100 gaining 1.8% and the Nifty Smallcap 100 rising 2.1%.
Top Gainers of the Day
- TCS — Up 3.2% to Rs 4,125 after strong Q4 guidance
- Infosys — Gained 2.8% on large deal win announcements
- HDFC Bank — Rose 2.5% on robust credit growth data
- Reliance Industries — Up 1.9% ahead of Jio’s 5G expansion plans
- Bajaj Finance — Surged 3.5% on better-than-expected AUM growth
Sectoral Performance
The Nifty IT index was the top-performing sectoral index, gaining 3.1% as the rupee weakened against the dollar, boosting export-oriented companies. The Nifty Bank index rose 2.4%, supported by improving asset quality metrics across major banks.
FII Activity Turns Positive
After being net sellers for the past six consecutive weeks, FIIs pumped in Rs 4,200 crore into Indian equities today. Analysts attribute this reversal to attractive valuations following the recent correction and a weakening US dollar.
Global Cues Supporting Indian Markets
Positive global cues also supported the rally. Wall Street closed higher overnight, with the S&P 500 gaining 0.8% and the Nasdaq rising 1.2%. Asian markets were broadly positive, with Japan’s Nikkei up 1.5% and Hong Kong’s Hang Seng gaining 0.9%.
Technical Outlook
Market technicians suggest that the Nifty has formed a bullish engulfing pattern on the daily chart, indicating potential for further upside. The immediate resistance is at 24,000, while support lies at 23,500. A sustained move above 24,000 could open the gates for a rally towards 24,500.
Expert View
“The market breadth has improved significantly, and we’re seeing a healthy rotation from defensive to cyclical stocks. Investors should consider adding quality large-cap stocks on dips,” said market analysts.
The India VIX, a measure of market volatility, dropped 8% to 13.2, indicating reduced fear among market participants. Trading volumes on the NSE were 15% above the 20-day average.
