The Sensex touched a record high for a second straight session on Friday, and crossed the 84,000 mark for the first time as a larger-than-usual interest rate cut reduction by the Federal Reserve and expectation of a soft landing by the US economy boosted investor sentiment.
FundFlow | FIIs net buy ₹14,064.05 crore while DIIs net sell ₹4,427.08 crore in equities today (provisional)
The Sensex rose 1,359.5 points to 84,544, while the Nifty climbed 375 points to 25,791. The Midcap index also rose 857 points to 60,209.
The indices closed higher for the second consecutive week, with frontline indices achieving record highs. The Nifty Bank surged nearly 3% for the second straight week, hitting a record high after 55 trading sessions.
On Friday, Mahindra & Mahindra, Shriram Finance, and NTPC emerged as top gainers on Nifty 50, while TCS, HCLTech, and BPCL were among the biggest losers.
Market breadth favoured advances, with an advance-decline ratio of 2:1. Six stocks, including JSW Steel and Eicher Motors, closed at record highs within the Nifty 50.
In midcap stocks, BSE Ltd, Max Health, and Macrotech were top performers, while Vodafone Idea and Indus Towers lagged.
Shipbuilding stocks also saw a notable surge, with Cochin Shipyard and Garden Reach gaining nearly 10% each.
In the foreign exchange market, the Indian rupee rose for a fifth consecutive session on Friday, helped by the positive global sentiment after the Fed’s rate cut. It closed at 83.5625 against the U.S. dollar, up from the 83.68 closing level on Thursday.
Various investors also expect the rate cut to lift the Indian rupee further. “As foreign investors bring more dollars into India, the demand for the rupee increases, causing the rupee to appreciate against the US dollar,” Anil Rego- Founder and Fund Manager at Right Horizons PMS said.