Updated February 2nd, 2024 at 17:31 IST
Nifty 50 hits fifth all-time high in 2024, amid fiscal boost
Indices recorded a remarkable 2 per cent gain over the week, marking their best performance of the year.
Market surge: The market benchmark Nifty 50 index achieved its fifth all-time high in 2024 on Friday, driven by substantial gains in Reliance and information technology (IT) stocks. The NSE Nifty 50 index surged to a peak of 22,126.80 points during the session, experiencing a minor pullback before settling 0.72 per cent higher at 21,853.80. Simultaneously, the S&P BSE Sensex marked a 0.61 per cent increase, reaching 72,085.63.
Both indices recorded a remarkable 2 per cent gain over the week, marking their best performance of the year. Large-cap stocks, notably Reliance Industries, had their strongest week since June 2022.
Reliance and Infosys, constituting two of the five highest-weighted Nifty stocks, exhibited a 2 per cent daily increase, contributing to the positive momentum.
Nine sectors logged gains
Among the 13 major sectors, nine logged gains, with the energy sector leading with a 3.16 per cent increase. Saurabh Jain, Assistant VP of Research for Retail Equities at SMC Global, noted the prominence of large-caps like Reliance and HDFC Bank in the rally, suggesting a potential shift in allocations from small- and mid-caps as investors seek stability in a costly market.
The small- and mid-cap sub-indices rose by 0.93 per cent and 0.37 per ccent, respectively. However, mid-cap gains were tempered by Paytm's 20 per cent decline for the second consecutive day following the central bank's directive to halt fresh deposits.
Analysts attribute the positive market sentiment to the government's fiscal prudence outlined in the recent budget. The commitment to fiscal consolidation and a focus on capital expenditure are viewed positively for bonds, with the impact on equities aligning with expectations, according to Abhishek Goenka, founder and CEO of IFA Global.
The IT index gained 2.16 per cent, anticipating key U.S. labour market data later in the day that could influence the timing of interest rate cuts.
(with Reuters inputs)
Published February 2nd, 2024 at 17:31 IST
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