Indian stock markets witnessed a significant surge on Friday, driven by a global rally following the release of US jobs and spending data that eased concerns over a potential recession. The Bombay Stock Exchange (BSE) Sensex opened the day on a strong note, climbing 605 points to reach 79,711, while the National Stock Exchange (NSE) Nifty rose 179 points to trade at 24,323 during early deals. This robust start reflects investor optimism as global markets reacted positively to the latest economic data from the United States.
Market Cap Soars as BSE-Listed Firms See Gains
The market capitalization of BSE-listed firms experienced a remarkable increase of ₹3.87 lakh crore, pushing the total market cap to ₹448.16 lakh crore, up from ₹444.29 lakh crore. This surge in market cap highlights the broad-based buying interest among investors, signaling a strong recovery in market sentiment.
Top Performers on Sensex
Out of the 30 stocks listed on the Sensex, 28 were trading in the green, showcasing widespread optimism across sectors. Among the top gainers were Mahindra & Mahindra (M&M), Tech Mahindra, Tata Motors, JSW Steel, and Tata Steel, with gains of up to 2.92% in early trade. These companies, representing key sectors like automobiles, technology, and steel, were at the forefront of the market rally, benefiting from the positive global cues and strong domestic demand.
Market Breadth and Sectoral Performance
The overall market breadth remained positive, with 2,209 stocks trading in the green out of the 3,156 stocks that were traded on the BSE. Meanwhile, 844 stocks were in the red, and 103 stocks remained unchanged, indicating a strong bullish sentiment in the market.
The midcap and smallcap indices also participated in the rally, with the BSE Midcap index rising by 420 points to 46,976 and the Smallcap index climbing by 490 points to 52,955. This performance reflects growing investor confidence in mid-sized and smaller companies, which often mirror broader economic trends.
All 19 BSE sectoral indices were trading in positive territory, with the Auto, Banking, Capital Goods, and IT sectors leading the charge. The BSE Auto index surged by 811 points, the Banking index by 572 points, the Capital Goods index by 613 points, and the IT index by 711 points. The widespread gains across sectors underscore the broad-based nature of the current rally, driven by renewed investor confidence across various segments of the economy.
Circuit Limits and Investor Activity
In the early morning session, 118 stocks hit their upper circuit limits, reflecting strong buying interest, while 92 stocks touched their lower circuit limits, indicating some pockets of profit-taking. The predominance of stocks hitting upper circuits suggests a market environment where bullish sentiment is prevailing.
FII-DII Activity
According to provisional data from the NSE, foreign institutional investors (FIIs) sold equities worth ₹2,595.27 crore on a net basis on Wednesday, while domestic institutional investors (DIIs) were net buyers, purchasing shares worth ₹2,236.21 crore. This contrast in activity highlights the ongoing tug-of-war between global and domestic investors, with DIIs providing crucial support to the market amid FII selling.
Previous Session Recap
In the previous trading session on August 14, the benchmark indices ended higher, with the Sensex closing 150 points up at 79,105 and the Nifty ending 5 points higher at 24,143. The continuation of this positive trend into Friday’s session further reinforces the bullish outlook for the Indian stock markets.
The strong start to the day’s trading, fueled by global economic data and domestic buying interest, suggests that investor sentiment remains robust, setting the stage for continued market strength.
