On the NSE, Nifty gained 429 points (1.8%) to close at 24,835 points.Outside of the blue chips, BSE’s midcap index closed over 2.1% higher while the smallcap index closed 1% up.
The day’s rally also lifted investors’ wealth by Rs 7 lakh crore with India’s market capitalisation now at an all-time high of almost Rs 470 lakh crore, official data showed.
According to Prashanth Tapse, senior VP (research), Mehta Equities, the domestic market outperformed its global peers on the back of a strong across-the-board buying support after languishing in negative territory for the past five trading sessions. “The sharp rebound signifies that India remains a good long-term bet and the economy continues to show strong resilience in spite of global uncertainty and geopolitical tensions. Also, most of the blue chips and mid-cap companies have reported better earnings, which is providing a major impetus to markets.”
Foreign investors, after remaining net sellers of stocks since the day of the Budget, turned net buyers on Friday. Foreign portfolio investors net infused Rs 2,546 crore into the market while domestic funds were net buyers at Rs 2,774 crore, BSE data showed.
Of the 30 sensex stocks only one, Nestle, closed in the red on Friday, indicating the strength of the rally. In the broader market, however, the advance-decline ratio was much more balanced. Compared to 2,595 stocks on BSE that closed higher, 1,354 stocks closed in the red.