Equity markets saw a strong start on Friday with Sensex and Nifty posting significant gains, backed by optimism around a potential India-US trade deal, record GST collections, and sustained foreign fund inflows
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Indian equity markets opened on a strong note on Friday, with both Sensex and Nifty surging in early trade, buoyed by renewed optimism over a possible India-US trade deal, record-high GST collections in April, and consistent foreign fund inflows. A positive trend across global markets also added to the bullish sentiment.
According to PTI, the 30-share BSE Sensex jumped 500.81 points to reach 80,743.05 in early trade, while the NSE Nifty rose 110.65 points to 24,444.85. As the session progressed, the Sensex further climbed by 816.41 points, hitting 81,064.47, and the Nifty advanced 222.30 points to touch 24,556.50.
Among the top gainers from the Sensex pack was Adani Ports, which soared nearly 5 per cent after reporting a 50 per cent year-on-year increase in net profit for the March quarter. The company also forecast stronger revenue growth for the current financial year, citing increased port activity and strong performance in its logistics segment.
Other major gainers included Maruti, IndusInd Bank, Axis Bank, ICICI Bank, Eternal and Mahindra & Mahindra. On the other hand, shares of Nestle, Titan, Bajaj Finserv and Hindustan Unilever declined during the session.
As per PTI, the market's continued resilience has been largely supported by robust foreign institutional investor (FII) activity. FIIs have been net buyers for eleven straight trading sessions, pumping in a total of Rs 37,375 crore during this period.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that the ongoing FII buying was encouraged by a weaker US dollar, signs of slowing growth in the US, declining interest rates in India, and lower crude oil prices. He also pointed to a high possibility of India becoming one of the key ‘allies’ to enter into early trade deals with the US, which could further boost investor confidence.
April’s Goods and Services Tax (GST) collection touched a record Rs 2.37 lakh crore, marking a 12.6 per cent increase compared to the previous year. According to PTI reports, the government sees this as a sign of the Indian economy’s resilience and the success of cooperative federalism.
Vikas Jain, Head of Research at Reliance Securities, said that domestic markets remained upbeat due to continued FII inflows, strong corporate earnings, record GST collections, and oil prices falling to a three-month low of USD 61 per barrel.
In the broader Asian markets, South Korea’s Kospi, Tokyo’s Nikkei 225, and Hong Kong’s Hang Seng were trading higher, while China’s Shanghai Composite Index edged slightly lower. US markets had also ended in the green on Thursday.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted that record GST figures, renewed FII activity, and the positive cues from global markets such as the Dow Jones’ eight-day rally, were all fuelling optimism. He added that markets received an extra boost after China indicated a willingness to engage in fresh tariff talks.
Brent crude, the global oil benchmark, rose by 0.69 per cent to USD 62.56 per barrel. Meanwhile, FIIs were net buyers on Wednesday, purchasing equities worth Rs 50.57 crore, as per exchange data.
Stock markets were closed on Thursday for Maharashtra Day. On Wednesday, the Sensex had ended 46.14 points lower at 80,242.24, while the Nifty had slipped marginally by 1.75 points to 24,334.20.
(With inputs from PTI)
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