Sensex Rallies 1,000 Points, Nifty Hits Fresh High; Key Reasons For Friday's Market Rally – News18

BSE Sensex surged over 1,000 points to a fresh record high of 73,574. Its NSE counterpart Nifty50 also hit a new peak as it topped 22,300 mark for the first time in Friday’s trade. The market capitalisation of all listed companies on BSE increased by Rs 3.23 lakh crore to Rs 391.18 lakh crore.

Key Reasons for the Market Rally

Better Than Expected GDP Print

Indian economy grew 8.4 per cent in the October-December quarter, the fastest pace in six quarters and also above estimates, aided by robust manufacturing and construction activity, data showed post-market hours on Thursday.

“The main factor influencing the market today is likely to be the better-than-expected Q3 GDP growth number which has come at an impressive 8.4%. The impressive GDP numbers provide the fundamental support to the bull market,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Upbeat Global Markets

Positive global cues also helped indices move higher. Wall Street stock closed in the green overnight, with S&P 500 and Nasdaq Composite settling at record highs after in-line U.S. inflation reading kept intact the likelihood of a June interest rate cut.

Meanwhile in Asia, Japan’s Nikkei hit a fresh record high, buoyed by the bounce on Wall Street. China’s CSI 300 rose 0.2 percent after factory data and Hong Kong’s Hang Seng index also edged higher.

US Inflation Data

The in-line US inflation reading also aided market sentiment as it kept intact the likelihood of a rate cut in June by the Federal Reserve. Rate cuts mean more liquidity in the market and a possibility of the Fed reducing rates soon as boosted positivity among participants.

FIIs in buying mode

Foreign investors net bought shares worth Rs 3,568 crore in the previous session, while domestic institutional investors sold shares worth Rs 230 crore. In the month gone by, they bought Indian equities worth Rs 5,107 crore, after pulling over Rs 25,000 crore out of the domestic market. In the past decade, FIIs have turned out to be buyers of domestic stocks in March on eight occasions.

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