Bulls lift NIfty50 to new highs, broader markets shine; FIIs shop at D-st in Nov

Domestic equity markets opened with optimism on Friday as NSE's benchmark index NIfty50 Index scaled a new lifetime high, breaching its previous high, scaled on September 15, 2023. Nifty50 scaled 20,225.85 in the early trading session thanks to buying across all the sectors.

The buying was fueled by the optimistic global sentiments and buying interest of the overseas investors, who pumped in more than Rs 9,000 crore in the Indian equities in the month of November 2023. Traders reacted to exit poll results of five state elections which has  been a mixed bag for the two largest parties. 

In the Nifty50 pack, Larsen & Toubro and NTPC gained about 3 per cent, while Asian Paints and ONGC gained about 2 per cent each in the early day. Power Grid, Sun Pharmaceuticals, Maruti Suzuki India, Dr Reddy's Laboratories, Apollo Hospitals Enterprises and Bharat Petroleum were other key gainers for the day.

The current market is experiencing dynamism, which  be attributed to positive political developments in India influencing the stock market, easing tensions in the Israel-Hamas conflict, reduced recession indicators in the US, and a rebound Indian Rupee, said Trivesh D, COO, Tradejini.

"Valuations in India have now adjusted to more reasonable levels, fostering increased market participation. Sectors like banking and chemicals are currently witnessing attractive valuations, drawing a new audience to the market. While the current recovery is expected to continue. Looking ahead to the longer term, market sentiment remains notably optimistic for remaining fiscal," he said.

On a sectoral front, only the Nifty IT index was trading in red. All other sectors were trading higher. The Nifty realty index gained about 2 per cent, while the Nifty media index rose over a per cent. The Nifty PSU bank, oil & gas, pharma and healthcare added about a per cent each.

However, BSE Sensex was below its 52-week high at 67927.23, hit on September 15, 2023. BSE's 30-share barometer rose more than 340 points to 67,330.90 during the early session. Fear gauge India VIX dropped more than 4 per cent to 12.15-levels.

Broader markets continued to outperform headline peers. Midcap index gained for the 22nd straight session and advanced another one per cent for the day, hitting new high at 34491.3. BSE smallcap Index also rose for a per cent to 40,718.81 during Friday's trading session

Parth Nyati, Founder of Tradingo said that Indian markets may continue momentum and outperform other global peers, backed by the strong fundamentals and under-ownership of FIIs. 

"FIIs may become net buyers amid rising US bond yields and the strong macroeconomics of India. State election results may create some kind of volatility, but we are preparing ourselves for a pre-election rally. In terms of level, 21000 looks like an easy task in the near term for the Nifty," he said.

 

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