EconomyMarkets
Sensex soars 1,718 points to 81,028 and Nifty reclaims 25,000 in a Dhanteras rally
The Sensex closed at its high of the day on Friday, up 2.17%, as banks, Mahindra & Mahindra and Titan led a seventh straight session of gains, shrugging off a sell-off across Asia.
Key points
- The Sensex closed up 1,718.01 points at 81,028.02, a gain of 2.17%.
- The Nifty 50 rose 493.75 points to 25,030.35, back above 25,000.
- Foreign investors had bought about ₹14,975 crore of shares on Thursday.
Indian shares ended Friday with a powerful rally. The Sensex closed up 1,718.01 points, or 2.17%, at 81,028.02, and the Nifty 50 rose 493.75 points, or 2.01%, to 25,030.35, back above the 25,000 mark on the day of Dhanteras.
Both indices closed at the very top of the day’s range. The Sensex had dipped to 79,016.05 in early trade, as markets across Asia tumbled after an overnight rout in US technology shares, and the Nifty touched 24,388.05. From there the buying never let up: the Sensex was at 79,956.74 at 1 pm and 80,375.65 at 2 pm, and it added another 650 points in the last ninety minutes.
Banks and M&M lead
Banks carried the market. Financial services and banking shares rose more than 2%, with ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank and State Bank of India among the leading gainers. Mahindra & Mahindra topped both the Sensex and Nifty lists, rising more than 4% after its September-quarter results, and Titan, Adani Ports, Sun Pharma and Tata Steel also climbed.
Very few shares fell. Power Grid was the only loser among Sensex stocks, while Tata Motors Passenger Vehicles, Eicher Motors and Grasim slipped on the Nifty. Smaller companies lagged, and the Nifty Smallcap 100 ended lower.
Foreign money returns
Much of the push came from abroad. Foreign institutional investors bought about ₹14,975 crore of Indian shares on Thursday, their largest single-day purchase in nearly six years, after a long run of selling.
“Markets extended their winning streak for the seventh consecutive session on Friday,” said Ajit Mishra, senior vice president for research at Religare Broking. “Following the sharp seven-session rally, some consolidation and sectoral rotation would be healthy,” he added.
Market analyst Vipin Dixena said that “lower crude oil prices, a stronger rupee and renewed foreign investment can support India’s macroeconomic stability”, but warned that “Nifty at 25,000 looks extended” and that profit booking was likely next week.
Traders were nervous even as prices climbed. The India VIX, which tracks expected swings in the Nifty, stayed between 16.75 and 17.66 through the afternoon.
Markets reopen on Monday, November 9.