India's Nifty 50 hits all-time high, posts best week in five months

India's Nifty 50 hits all-time high, posts best week in five months


Faster-than-expected quarterly economic growth supported domestic equities

Follow on
Follow us on Google News

BENGALURU (Reuters) – India's Nifty 50 hit a fresh record high on Friday and logged its best week in five months as strong macroeconomic data added to optimism over the global interest rate outlook.

The blue-chips Nifty 50 and BSE Sensex gained 2.39 per cent and 2.29pc, respectively, led by a rise in energy stocks.
Faster-than-expected quarterly economic growth and acceleration in factory growth in November supported the rise in domestic equities.

"Indian markets are in a sweet spot, boosted by return of foreign inflows, strong macroeconomic data, and easing US rate outlook, among other factors," said Umeshkumar Mehta, chief investment officer at Samco Mutual Fund.

FPIs snapped a two-month selling streak in November, adding stocks worth 90 billion rupees ($1.1 billion).

Read more: Companies listed at Bombay Stock Exchange are now valued over $4tr

Oil & Gas rose 4.38pc, and was the top weekly sectoral gainer, aided by a drop in crude oil prices as production cuts agreed by OPEC+ were below market expectations

On the day, the Nifty 50 rose 0.67pc to settle at a record close of 20,267.90, while the S&P BSE Sensex gained 0.74pc at 67,481.19. The Sensex is less than 1pc shy of the record high hit on Sept 15, 2023.

Among individual stocks, Hindustan Aeronautics climbed 3.46pc after an approval from the defence ministry to procure weapons worth 2.23 trillion rupees.

Read more: Stocks on steroids, as FDI prospects help KSE-100 Index jump over 60,000 hurdle

Private lender Axis Bank gained 2.83pc to hit a record high for a second session in a row, leading to a 0.75pc rise in the bank index.

Indian state assembly elections' results, due on Dec 3, could trigger near-term volatility in the markets, three analysts said.

"While state elections are largely a non-event for equity markets from a long-term perspective, there might be some sharp reaction early next week," said Pramod Gubbi, founder of Marcellus Investment Management.