Last updated: Sep 15, 2023 3:47 PM IST
Major indexes hit new highs for a second day on Friday, tracking strength in global markets. The BSE Sensex index rose 250 points to 67,774 and the Nifty50 index rose 55 points to 20,173.
Gains at bluechips including Tata Motors, HCLTech, HDFC Bank and Wipro lifted the markets.
The broader markets maintained their lead over the benchmarks. The BSE MidCap and SmallCap indices rose up to 0.7 percent.
Sector-wise, Nifty Metals, IT and Auto indices led gains, while FMCG, Media and PSB indices trailed with losses.
Among the shares, Bajaj Auto rose 4.5 percent after global brokerage BofA upgraded the stock from ‘neutral’ to ‘buy’ and increased its price to Rs 5,550 from Rs 5,100.
Shakti Pump zoomed 12 per cent on receiving a government order of Rs 293 crore for 10,000 pumps.
“A positive opening could be seen in local indices due to optimism in global equities as recession fears appear bleak following recent policy measures by central banks in major economies. However, intraday volatility will continue given the uncertainty surrounding global markets. As long as the Nifty trades above 20,000, bullish sentiment is likely to continue, with a potential rally to 20,200-20,250-20,300,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Service, said, “The participation of bluechips like Infosys, RIL, L&T, HDFC Bank and ICICI Bank has added resilience to the ongoing rally. Although the undercurrent of the market is bullish, the high valuations and new risks such as rising oil prices and rising dollar index could negatively impact the market. Brent crude at $94 is a major macroeconomic concern that the market cannot ignore for long. The rising dollar index that has crossed 105 and attractive US bond yields (10-year yield at 4.28%) will force financial institutions to sell aggressively soon.”
“Even if they continue to invest in this rally, investors may consider some profit booking, especially in the overheated mid- and small-cap sector. In the microcap space, it is hope and momentum, and not fundamentals, that are driving the rally,” he added.
Shares in Tokyo opened higher on Friday, extending rallies on Wall Street where traders digested strong retail sales data. The benchmark Nikkei 225 index rose 0.83 percent, or 274.72 points, to 33,442.82 in early trading, while the broader Topix index added 0.83 percent. , or 19.89 points, to 2,425.46.
The S&P 500 finished higher on Thursday after better-than-expected economic data eased recession concerns without increasing fears of a Federal Reserve rate hike next week, while Arm Holdings soared in its stock market debut.