On Friday, the domestic stock market traded with great momentum. Both BSE Sensex and NSE Nifty gained more than 1 percent.
Stock Market Today: The Indian stock market ended trading with strong gains on Friday. On the back of positive global cues, better quarterly results of IT major TCS and widespread buying, BSE Sensex closed with a jump of 828 points, while NSE Nifty 50 also reached above the important level of 24,200.
The impact of this boom in the market was not limited to only big stocks. Strong buying was also seen in the shares of midcap and smallcap companies, which further strengthened the confidence of investors.
Sensex and Nifty gained more than one percent
A positive atmosphere was seen in the Indian equity market on the last trading day of the week. Both the major indices Sensex and Nifty gained more than one per cent. According to analysts, the main reasons for the strength of the market were encouraging signals from the IT sector, strong corporate earnings and positive signals from global markets. Investors bought heavily in shares related to banking, real estate, IT and financial services, due to which the market remained broad.
Investors’ confidence increased due to better results of TCS
The quarterly financial results of the country’s leading IT company Tata Consultancy Services (TCS) were in line with market expectations. The company’s performance created a positive sentiment across the information technology (IT) sector. Experts believe that signs of stable demand and strong earnings in the IT sector increased the confidence of foreign and domestic investors, which had a direct impact on the stock market.
The better performance of IT companies also strengthened expectations that corporate earnings may continue to improve in the coming quarters. Not only big stocks, but also shares of medium and small companies performed well in Friday’s trading. Nifty Midcap 100 and Nifty Smallcap 100 indices gained about 1.5 per cent each. This indicated that there was widespread buying in the market and the risk appetite of investors had improved.
Public sector banks and real estate sector remained at the forefront
Shares of public sector (PSU) banks and real estate companies were the most discussed in the day’s trading. Strong buying in the banking sector supported the financial indices, while shares of real estate companies also witnessed good interest from investors. According to market experts, stable expectations regarding interest rates and signs of improvement in domestic demand strengthened these sectors.
The trend in international markets remained mixed, but the strength of Asian markets gave positive support to the Indian market. Major indices in the Asia-Pacific region recorded good gains. Investor sentiment was positive in the stock markets of Japan, Australia, Hong Kong and China.
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