Indian Stocks Rally: Sensex Nears 86,000 Mark Amid Market Optimism

Indian stocks continued their upward trend on Friday, with the Sensex approaching the 86,000 mark. The rally was driven by strong buying from both foreign and domestic institutional investors. Major indices, including Nifty IT and Nifty Metal, saw significant gains in opening sessions, highlighting market resilience.

The rally in Indian stocks pressed on Friday as both the Nifty and Sensex indices sustained their upward trajectory, with the Sensex approaching the 86,000 mark. The Nifty 50 index opened at 26,226 points, registering a slight rise of 0.04%, while the BSE Sensex commenced trading at 85,897 points, gaining 57 points. The Sensex breached the 86,000 mark during the pre-opening session, eventually hitting a new high of 85,955 points after the market opened.

Following the Fed's rate cut decision, Foreign Institutional Investors (FIIs) ramped up their buying of Indian equities, with net purchases amounting to Rs 629 crore on Thursday. Domestic Institutional Investors (DIIs) outperformed foreign investors with net purchases totaling Rs 2,405 crore on the same day. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that a key trend in the market is the noticeable outperformance of large-cap stocks over mid and small caps. This trend has been particularly evident over the past five trading days, during which the Nifty appreciated by 2.85% compared to a minor 0.6% uptick for the small-cap index. Vijayakumar suggested that this trend, bolstered by a surge in domestic liquidity, could enhance market resilience and propel it higher. He added, 'It appears that smart money is shifting from mid and small caps to large caps.'

Among sectoral indices on the National Stock Exchange, Nifty IT and Nifty Metal led the gains during the opening session. In the Nifty 50 list, 24 stocks opened with gains, while 26 stocks declined at the time of reporting. Shriram Subramanian, Founder and MD of InGovern Research Services, stated, 'Markets are reaching new heights thanks to robust FPI and DII buying. Large caps are showing great buoyancy and are poised for further increases.'

Meanwhile, in Asian markets on Friday, Hong Kong's Hang Seng index topped the charts, surging more than 2.5% during the trading session. Other indices in the region displayed mixed performance, with Japan's Nikkei 225 inching up by 0.10%, Taiwan's index rising 0.4%, and South Korea's KOSPI dipping by 0.04%. In the US markets on Thursday, marginal gains were recorded as the S&P 500 rose by 0.40% and the Nasdaq increased by 0.60%. European markets were also buoyant, with France's CAC index advancing over 2.2% to close with a strong rally.

(With inputs from agencies.)