Friday rally: Investors richer by Rs 7 lakh cr; Sensex ends above 80k, Nifty outlook and more

Benchmark indices ended with stellar gains on Friday as fears of recession faded in the US post jobs and spending data. Sensex climbed 1,331 pts to 80,436 and Nifty rose 397 points to 24,541. Market cap of BSE-listed firms gained Rs 7.27 lakh crore to Rs 451.56 lakh crore against Rs 444.29 lakh crore on Wednesday. 

Of 30 Sensex stocks, 29 ended in the green. Tech Mahindra, Tata Motors, M&M, TCS, HCL Tech and Ultratech Cement were the top gainers on Sensex, rising up to 4%. 

 Analysts have mixed views on the outlook of the market post today’s rally.

Ajit Mishra – SVP, Research, Religare Broking said, "With the Nifty breaking out of its consolidation phase, it appears poised to close the gap around the 24,700 level. If there is any dip, the 24,300-24,400 zone should provide support. We recommend aligning trades with a focus on stock picking. In the absence of any major domestic triggers, attention will remain on global market performance for further cues."

Vinod Nair, Head of Research, Geojit Financial Services said, "Domestically, the Indian CPI inflation rate has fallen below the estimate, signalling optimism. However, challenges such as a drop in WPI inflation, weak IIP, and lukewarm Q1 corporate earnings suggest that market gains may be limited, which is reflected by FIIs maintaining a net seller position."

Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty rallied above 24,500 after days of consolidating within a 400-500 point range. In the near term, Nifty may continue consolidating within the 24300-24550 range. Only a decisive move above 24,550 could trigger a directional up move in the index. A buy-on-dips strategy may be more effective unless Nifty decisively falls below 24,300."

As many as 202 stocks hit their 52-week highs today. On the other hand, 46 shares fell to their their 52-week lows on BSE.

Market breadth was positive as out of 4036 stocks traded, 2462 stocks ended in the green. Around 1467 stocks closed in the red and 107 stocks remained unchanged.

BSE midcap and smallcap indices rose 839 pts to 47,394 and 902 pts to 53,857, respectively. 

All 19 BSE sectoral indices ended in the green. Capital goods, auto and IT shares were the major gainers with their BSE indices rising 1308 points, 1077 pts and 1308 pts, respectively. 

Around 9 stocks hit their upper circuits as the stock market rallied on Friday . On the other hand, 6 shares hit their lower circuit limits.

FII-DII data

Foreign institutional investors sold Rs 2595.27 crore worth of equities on a net basis on Wednesday, while domestic investors bought Rs 2236.21 crore of shares, as per provisional NSE data.

Previous session 

Benchmark indices ended higher on August 14. Sensex closed 150 pts higher at 79,105 and Nifty ended 5 pts higher at 24,143. 

US market

Overnight, US market ended with big gains. 

Dow Jones closed 538 pts higher at 40,546 and Nasdaq added 399 pts to 17,591. S&P 500 closed 90 pts higher at 5,545 on Thursday.

Asian markets 

Japan's Nikkei gained 1336 pts to 38,062 and Hang Seng rose 321 pts to 17,430 today. Taiwan Weighted index climbed 454 pts to 22,349. Kospi added 53 pts to 2,697 today. 

European markets 

FTSE fell 36 pts to 8310 on Friday. France's CAC added 15 pts to 7,439 and DAX was up 109 points at 18,292.