![The Sensex surged 1,000 points in a stunning rally on Friday and the Nifty hit an all-time high, reflecting the positive markets. The Sensex surged 1,000 points in a stunning rally on Friday and the Nifty hit an all-time high, reflecting the positive markets.](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=356)
The Sensex surged 1,000 points in a stunning rally on Friday and the Nifty hit an all-time high, reflecting the positive markets.
Great Friday on D-Street! Nifty, Sensex surged more than 1% on cheers from faster-than-expected GDP print and US inflation data.
The BSE Sensex surged over 1,200 points to hit a record high of 73,574. NSE counterpart Nifty50 also hit a new high, crossing 22,300 for the first time in Friday trading. The market capitalization of all companies listed on BSE increased from Rs 3.23 lakh crore to Rs 391.18 lakh crore.
Among Sensex 30 stocks, Tata Steel, Mahindra & Mahindra and JSW Steel rose nearly 2 per cent each. Tata Motors, Maruti, Larsen & Toubro and Power Grid were other major gainers. Meanwhile, Sun Pharma fell 0.8%.
In the broader market, the BSE MidCap index rose 0.7 per cent and the SmallCap index surged 1 per cent.
Key reasons for the market rally
GDP prints better than expected
India's economy grew 8.4% in the October-December quarter, the fastest pace in six quarters and also beat estimates, driven by robust manufacturing and construction activity.
“The main factor influencing the market now is likely to be better-than-expected third quarter GDP growth (8.4%). The impressive GDP numbers provide fundamental support to the bull market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Optimistic global markets
Positive global signals also helped the index rise. Wall Street stocks closed in the green overnight as the S&P 500 and Nasdaq Composite hit record highs after U.S. inflation figures left the possibility of a June interest rate cut intact.
Meanwhile, in Asia, Japan's Nikkei index hit an all-time high thanks to a rebound on Wall Street. China's CSI 300 index rose 0.2% after the factory index, and Hong Kong's Hang Seng index also rose slightly.
US inflation data
In-line US inflation figures also helped market sentiment, keeping the odds of a June interest rate cut by the Federal Reserve intact. Interest rate cuts mean increased liquidity in the market, and the possibility of the Federal Reserve lowering interest rates has increased positive evaluations among participants.
FII in purchase mode
Foreign investors were net buyers of shares worth Rs 3,568 crore in the previous session, while domestic institutional investors sold shares worth Rs 230 crore. Last month, they bought Indian stocks worth Rs 5,107 crore after pulling Rs 25,000 crore from the domestic market. It was revealed that over the past 10 years, FIIs purchased domestic stocks eight times in March alone.
cool technology
According to technical charts, Nifty50 has found support near the critical 21,850 level. Analysts say a violation of this support level in the near term could trigger a corrective move, especially if confirmed by a technical bearish pattern on the Rising Wedge.
“If these analyzes are confirmed, we could see Nifty falling towards 21,700 – 21,625 levels. Therefore, the upcoming session will be very important to gauge how the price reacts around the key support levels of 21900-21850. Additionally, the emergence of a new sell signal in the RSI Smoothened indicator along with the average line suggests limited upside.” wrote Sameet Chavan, Head of Research, Technology and Derivatives Research, Angel One.
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