Sensex, Nifty Gain for 5th Day in a Row: Market Sentiment Boosted by Stronger Rupee, IT Rebound
The Indian stock market continued its upward journey on Friday, with the benchmark indices, Sensex and Nifty, extending their winning streak to five consecutive sessions. This rally was fueled by multiple positive factors, including a stronger rupee, fresh inflows from foreign investors, and a rebound in IT stocks, which had recently faced pressure.
Sensex and Nifty’s Weekly Performance
The Sensex recorded an impressive intra-day high of 77,042 points before settling slightly lower at 76,906, gaining 557 points by the end of the day. Over the week, it posted a sharp rise of 3,077 points, reflecting a 4.17% gain.
Meanwhile, the Nifty index climbed to a high of 23,403 during the trading session and eventually closed at 23,350, adding 160 points on Friday alone. For the week, the Nifty saw a jump of 953 points, reflecting a 4.26% gain.
Top Gainers and Losers
Several stocks contributed to this rally, with NTPC emerging as the top gainer, rising by 3.3% on Friday. Other companies like Bajaj Finance, Sun Pharma, Larsen & Toubro (L&T), Kotak Mahindra Bank, Nestle India, Tata Motors, and Axis Bank also performed well and recorded notable gains.
However, not all stocks ended on a positive note. Mahindra & Mahindra declined by over 1%, while Tata Steel, Infosys, Titan, and Bajaj Finserv also slipped into the red.
Broader Market Performance
The rally wasn’t limited to large-cap stocks. Mid-cap and small-cap stocks also benefited from positive market sentiment. The BSE MidCap index gained over 1%, while the SmallCap index surged by more than 2% during intra-day trading.
Sectoral Gains and Losses
Among various sectoral indices, the BSE Oil & Gas index led the gains, rising by over 2%. Other sectors like Power, Healthcare, and Financial Services also witnessed solid growth.
On the downside, the BSE Consumer Durables index fell by 0.8%, while the Metal index slipped by 0.4%, reflecting some profit-booking in these segments.
Strengthening Rupee and FII Inflows
Another key factor supporting the market rally was the strengthening of the Indian rupee. The rupee appreciated by Rs 0.40 or 0.46%, closing at 85.94 against the US dollar. This was driven by strong inflows from foreign institutional investors (FIIs), who have been increasing their buying activity in the Indian markets.
Financial analyst Jateen Trivedi from LKP Securities explained that the US Federal Reserve’s recent decision to keep interest rates unchanged, along with its forecast for lower rates in the future, had weakened the US dollar. This provided a boost to the rupee and, in turn, supported Indian equities.
Impact on Gold Prices
The strengthening rupee also put pressure on gold prices in the domestic market. Trivedi noted that gold faced profit booking as the rupee’s strength pushed prices below Rs 88,100 on the Multi Commodity Exchange (MCX). The prices tested the crucial support level of Rs 88,000, indicating possible further downside if global risk sentiment continues to stabilize.
He further mentioned that gold might test lower support zones around $2,950–$2,965 before any fresh upward movement, especially as uncertainty in global markets reduces.
Conclusion
In summary, the stock market’s strong performance on Friday, combined with a robust weekly rally, reflects growing investor confidence. Key factors such as FII inflows, a stable rupee, and recovering sectors like IT have contributed to this positive momentum. However, investors are advised to keep an eye on global cues, sectoral rotations, and commodity prices, which may influence the market’s direction in the coming days.
