Stock market today: The BSE Sensex witnessed a remarkable surge of over 2,000 points on Friday, whilst Nifty50 crossed the 23,900 mark, recovering from five-month lows of the previous session, supported by positive US labour market data. BSE Sensex ended the day at 79,117.11, up 1,961 points or 2.54%. Nifty50 closed at 23,907.25, up 557 points or 2.39%.
The collective market value of BSE-listed companies increased by Rs 7.2 lakh crore, reaching Rs 432.55 lakh crore, according to an ET report.
The primary contributors to the Sensex upturn included ICICI Bank, Reliance Industries, SBI, Infosys, ITC, and L&T. Additional support came from TCS, Bharti Airtel, and Bajaj Finance.
All major sectors displayed positive movement, with Nifty PSU Bank and Realty advancing nearly 3%. Other sectors, including Banking, Financial Services, FMCG, IT, Metal, Healthcare, and Oil & Gas, registered gains between 1-2%.
The key factors driving today’s stock market rally are:
1) IT Sector Performance
Nifty IT advanced almost 2%, bolstered by robust US employment figures. US jobless claims decreased by 6,000 to 2,13,000 for the week ending November 16, reaching a seven-month low. This suggests a likely recovery in November employment following October’s decline.
The healthy US labour situation benefits Indian IT companies, which generate substantial revenue from American operations.
2) Adani Shares Recovery
Adani Group shares rebounded, rising up to 6%. Ambuja Cement led with 6% growth, followed by ACC at 4%. Adani Enterprises increased by 2.5%, whilst other group companies gained 1-2%.
3) Value Buying
Investors capitalised on recent market corrections, with Nifty having declined over 11% from its peak. Mid-cap and small-cap indices experienced corrections of approximately 12% and 9%, respectively.
4) International Market Influence
Asian markets showed positive movement. Japan’s Nikkei advanced after two declining sessions. Korea’s Kospi rose 0.84%, whilst Australia’s S&P ASX 200 gained 0.85%.
5) PSU Banking Sector
Public sector banks contributed significantly, with SBI, Bank of Baroda, and Punjab National Bank leading the recovery. The Nifty PSU Bank Index advanced nearly 3% to 6,509.2.
6) Maharashtra Political Outlook
Markets responded positively to exit polls suggesting a likely victory for the BJP-led Mahayuti alliance in Maharashtra, a crucial economic centre and political arena.
