Investors Rejoice As Equities Rally to Record Gains

Investors' wealth increased by Rs 7.30 lakh crore as the Sensex surged by nearly 2% amid improving US economic data. The 30-share BSE benchmark marked its highest single-day gain in over two months, driven by significant buying in sectors like IT, auto, and metal.

Investors' wealth soared by Rs 7.30 lakh crore on Friday, driven by a rally in equities, where benchmark Sensex jumped nearly 2 percent amid easing fears of recession in the US.

The 30-share BSE benchmark surged 1,330.96 points or 1.68 percent to settle at 80,436.84, marking its best single-day gain in more than two months. During the day, it soared 1,412.33 points or 1.78 percent to 80,518.21.

The market capitalization of BSE-listed firms skyrocketed by Rs 7,30,389.86 crore to Rs 4,51,59,833.55 crore (USD 5.38 trillion).

Positive US economic indicators, such as cooling inflation and robust retail sales, eased recession concerns, while speculations of a rate cut by the US Fed next month fueled a global market rally, including in India.

Local markets opened strong and remained in positive territory throughout the session. Buying opportunities were seized by local investors after a recent slump, with sectors like banking, IT, auto, metal, and realty leading the surge, according to Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Tech Mahindra, Tata Motors, Mahindra & Mahindra, Tata Consultancy Services, HCL Technologies, UltraTech Cement, Tata Steel, and ITC were among the biggest gainers from Sensex firms.

Sun Pharma emerged as the only laggard.

Vinod Nair, Head of Research at Geojit Financial Services, noted that the stability of the JPY and strong US retail sales, along with a decrease in weekly jobless claims, have alleviated US recession fears. The decline in US CPI inflation additionally boosted market sentiment, prompting strong buying interest in Indian IT firms.

The BSE midcap gauge jumped 1.80 percent, and the small-cap index climbed 1.70 percent. All indices ended higher, with the IT index soaring 2.72 percent and the realty index jumping 2.45 percent. Other sectors, including tech, auto, commodities, power, financial services, and consumer discretionary, also closed higher.

A total of 2,462 stocks advanced, while 1,467 declined, with 107 remaining unchanged on the BSE.

(With inputs from agencies.)