The 30-share BSE Sensex surged more than 1,000 points or 1.15 per cent to make an intraday high of 78,281. The 50-share NSE Nifty made a high of 24,367, up 295 points or 1.2 per cent.
VK Vijayakumar, chief investment strategist, Geojit Investments, said that one trigger for today’s rally could be the results of major banks expected on Saturday (HDFC Bank, ICICI Bank, and Axis Bank). Going by their first quarter credit and deposit growth, the results are likely to be strong.
From the Sensex pack, Reliance Industries was the top gainer, up more than 2 per cent. Notably, RIL results are due later today. TCS, Kotak Mahindra Bank, Tech Mahindra, HUL, Axis Bank, Infosys, HDFC Bank, M&M, HCL Tech, ICICI Bank, and HDFC Bank were up more than 1 per cent each.
As of 2:30 PM, the BSE Sensex index was holding the gains to trade 919 points, or 1.19 per cent higher at 77,108. The Nifty 50 index gained 238 points, or 0.99 per cent, to quote at 24,310.
Stock market rally today: Key reasons
Nifty IT leads market rally: The Nifty IT index gained 1.16 per cent to trade at 29,042 as of 11:25 AM. Tech Mahindra climbed 3 per cent after the IT company reported a 28.4 per cent rise in consolidated net profit for the June quarter at ₹1,465 crore, and expressed confidence about the demand environment. TCS and HCL Tech gained more than 2 per cent, while Infosys shares surged 1.5 per cent.
Buying in heavyweights: RIL shares were up 2 per cent to trade at ₹1,321. It was contributing 160 points to the Sensex’s rally. According to Vijayakumar, Reliance Industries is supporting the market, as its results could come in better than expected.
HDFC Bank and ICICI Bank gained 1.3 per cent and 1.2 per cent, respectively, contributing 132 points and 110 points to the benchmark Sensex.
FIIs activity, chip stocks rout: Vijayakumar said that FIIs have turned positive in the last one month, even though they sold equity for ₹4206 crore on Thursday. He said that FIIs could find value in India if the rout continues in South Korea.
“This was expected to happen and India could be the possible beneficiary of this one. A weakness in chip stocks will be good for India because FIIs actually have been turning buyers in India slowly in July,” he said.
Rupee rises: The rupee gained 14 paise to 96.28 against the US dollar on Friday, buoyed by positive sentiments in the equity markets. Notably, the domestic currency depreciated for the fourth straight day on Thursday, shedding 17 paise to settle at 96.42.
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