Sensex Surges 120 Points, Nifty Crosses 24,400; Tech Mahindra Slumps 4%

Indian bourses opened on a positive note on Friday, with the BSE Sensex adding 119 points to reach 80,158, while the Nifty50 index rose marginally by 17 points to 24,423 levels. Despite the overall positive trend, Tech Mahindra led the losses on the Sensex, down by 4%. Other notable losers included IndusInd Bank, Maruti, and L&T. Conversely, Bharti Airtel gained 2%, followed by TCS, Tata Steel, Infosys, and Kotak Bank.

Market View

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the resilience of the ongoing bull market in India, noting its ability to overcome various concerns such as elections, the Budget, and corrections in the US market. He emphasized the success of the “buy on dips” strategy and highlighted the valuation discrepancy between large caps and mid/small caps. Dr. Vijayakumar suggested that long-term investors should take advantage of this discrepancy by purchasing quality large caps during declines. He also pointed out that Foreign Portfolio Investors (FPIs) have turned sellers, which could put pressure on large caps, though this is being offset by Domestic Institutional Investors (DII) buying.

Global Cues

Steady trade in Asia is expected to lend support to the Indian markets. Australia’s ASX200 and South Korea’s Kospi indices both rose by 0.87% this morning. Hong Kong’s Hang Seng added 1.14%, and Japan’s Nikkei gained 0.19%.

Overnight, the S&P 500 declined by 0.51% on Wall Street, while the Nasdaq dropped by 0.93%. However, the Russell 2000 gained 1.26% as investors shifted from tech stocks to small caps. The Dow Jones Industrial Average outperformed other major averages, rising by 0.2%, driven by higher-than-expected growth in the second-quarter GDP. Data showed that the US economy grew by 2.8% in the said quarter.

Key Highlights:

• Sensex: Up by 119 points, reaching 80,158.
• Nifty50: Rose marginally by 17 points to 24,423.
• Top Gainers: Bharti Airtel (+2%), TCS, Tata Steel, Infosys, Kotak Bank.
• Top Losers: Tech Mahindra (-4%), IndusInd Bank, Maruti, L&T.
• Global Markets: Positive performance in Asia with gains in ASX200, Kospi, Hang Seng, and Nikkei.
• US Market: Mixed performance with S&P 500 and Nasdaq declining, while Russell 2000 and Dow Jones showed gains.

Conclusion

The Indian stock market continues to show resilience amidst various concerns, supported by positive global cues and strategic buying on dips. Investors are advised to keep an eye on valuation discrepancies and global economic indicators that could influence market movements in the coming days.