Indian equity markets demonstrated remarkable strength on Friday, pushing their rally into a seventh consecutive session. Both the benchmark Nifty and Sensex indices climbed over 2% each, reaching new highs and adding to the festive cheer on Dalal Street as Diwali approaches.
The NSE Nifty index surged 493.75 points (2.01%) to settle at 25,030.35, marking a gain of 2,331.5 points over the past seven trading days. Similarly, the 30-share BSE Sensex rallied 1,718.01 points (2.17%) to close at 81,028.02, having advanced 7,781.99 points during the same period.
Investor Wealth Soars
This sustained upward momentum significantly boosted investor wealth. The total market capitalisation of BSE-listed companies increased by approximately Rs 1.49 lakh crore on Friday alone, reaching Rs 503.10 lakh crore. Over the last seven trading sessions, notional investor wealth has collectively grown by a staggering Rs 30.41 lakh crore.
India Bucks Global Trends
Domestic indices emerged as a bright spot in Asia, contrasting with other regional markets that faced pressure amid renewed concerns over artificial intelligence (AI)-related investments. The weakness across other Asian markets followed a tech-led sell-off on Wall Street, fueled by worries about a potential slowdown in AI investments and data centre spending, particularly after setbacks for Republicans in US mid-term elections.
Vinod Nair, Head of Research at Geojit Investments, commented on India's resilience:
"Indian equities defied a global rout, extending their winning run as investors treated the home market as a relative safe harbour amid turmoil abroad. Wall Street was hammered by a sharp tech sell-off as investors weighed the prospect of tougher regulation under Democrats. Large private banks emerged as the prime beneficiaries, their deep liquidity and attractive valuations making them a natural home for this rotational money."
Nair also highlighted other contributing factors, noting, "A sharp weekly slide in crude, easing US Treasury yields and a firmer rupee further burnished India's relative appeal."
Echoing this sentiment, Ponmudi R, CEO of Enrich Money, added, "The Indian rupee also staged a sharp recovery, touching 93.80 against the US dollar, its strongest level in six months, supported by softer crude prices and the return of foreign portfolio inflows. The combination of renewed foreign buying, a firmer rupee and easing crude oil prices has strengthened the domestic market outlook."
However, Ponmudi R cautioned that the gains being concentrated in select large-cap stocks might indicate an uneven recovery, warranting some vigilance from investors.