Stock Market Today: BSE Sensex Nifty 50 at life time highs why benchmark indices Dalal Street rallied today – top reasons | India Business News

Stock market today: BSE Sensex and Nifty50 closed at all time highs on Friday, ending the week on a bullish note. Both the benchmark equity indices marked significant gains of over 1%. This surge was propelled by a remarkable upswing in IT stocks following TCS and Infosys surpassing financial expectations.
The 30-share BSE Sensex soared 1.18% or 847.27 points, ending the trading session at a record of 72,568.45.Intra-day, it peaked at 72,720.96, registering a 1.39% increase.
Nifty also experienced an uptick, rising by 1.14% or 247.35 points to attain a lifetime closing high of 21,894.55. Intra-day, it reached a fresh record of 21,928.25, reflecting a 1.29% surge.

BSE Sensex, Nifty50 at lifetime highs: Why did stock market rally today?

Narendra Solanki, Head Fundamental Research – Investment Services, Anand Rathi Shares and Stock Brokers said that the Indian markets have seen a positive note following better than expected results by IT majors which reported largely inline to marginally better results for the third quarter as against expectations of subdued results.
“This led to a buildup of overall positive sentiments across the IT sector and heavy buying at IT and tech counters helped indices to hold strong gains. The rally was also supported by follow up buying seen in realty, oil and gas and PSU banks which further added to the strong gains,” Solanki told TOI.
Siddhartha Khemka, Head of Retail Research, Broking and Distribution, MOFSL said that the rally in the IT sector and a 19% surge in India’s net direct tax collection supported domestic equities to make new highs on Friday. “Nifty is now just 100 points away from crossing another milestone of 22k zone. In the coming week market will take cues from Q3 results, India’s inflation, and US PPI data. HDFC Bank, HUL, Ultratech, ICICI Bank, Asian Paints, and several midcap companies will announce their Q3 results next week. Thus, we might see stock-specific action. US markets will remain closed on Monday,” he told TOI.
According to Vinod Nair, Head of Research at Geojit Financial Service, Indian markets surged to unprecedented levels in a strong rally, led by influential players in the IT sector. The budding signs of recovery within the IT industry, supported by an optimistic forecast for BFSI in FY25, had a positive impact on market sentiments. The strong performance of PSU banking stocks is emphasized by the natural alignment between their loan portfolios and the current business cycle, Nair said.

According to an ET report, the market capitalization of all stocks listed on BSE also saw a significant rise, increasing by approximately Rs 3 lakh crore to reach Rs 373.4 lakh crore. In dollar terms, the Indian stock market is now close to the $4.5 trillion mark, positioning itself to potentially surpass Hong Kong as the world’s fourth-largest hub of equities.
Interestingly, today’s rally seemed unfazed by higher-than-expected US inflation and positive job data, which had tempered expectations for an immediate rate cut by the US Federal Reserve.
While the US market remained relatively stable due to higher-than-expected inflation, Japan’s Nikkei share average reached a fresh 34-year peak on Friday.
The market has also been supported by steady inflows into mutual funds and buying by retail investors. Recent market data shows that domestic institutional investors were net buyers, contributing more than Rs 1,600 crore.
Yet another factor that worked in favour of the rally today was that both Nifty PSU Bank and Nifty Realty witnessed jumps of around 2-3% each, as investors remain optimistic about their growth outlook in the near term.
The sustainability of this rally remains uncertain. The ongoing earnings season for the December quarter is expected to be a vital factor influencing market returns in the near term. The substantial increase in the shares of Reliance Industries (RIL) over the past three sessions, amounting to over 6%, has also supported the overall index. The market will be closely watching HDFC Bank’s results on January 16th for further insights into the direction of Bank Nifty.
Infosys witnessed an almost 8% rise post its December quarter earnings meeting market expectations. Tata Consultancy Services saw a nearly 4% climb, buoyed by an 8.2% growth in net income for the December quarter, amounting to Rs 11,735 crore.
The BSE Information Technology index demonstrated the highest jump among sectoral indices, rising by 5.06%.