After trading weak on Thursday on monthly F&O expiry, benchmark indices Nifty and Sensex witnessed strong buying interest on Friday deals. The Nifty 50 index shot up around 200 points or 1 percent to touch an intraday high of 19,726.25, and the Sensex surged nearly 1 percent to hit an intraday high of 66,151.65. The Bank Nifty index also shot up 1 percent to 44,755.05 on Friday. The market capitalisation of all BSE-listed stocks surged by Rs 3.28 lakh crore to Rs 319.94 lakh crore.
Gainers, losers
Except information technology (IT), all other sectoral indices are trading in the green with metal, oil & gas, power, PSU bank and healthcare indices up 1-2 percent each. From the Sensex pack, NTPC, Tata Steel, JSW Steel, and L&T were the top gainers, rising 1-2 percent. Tata Motors, Sun Pharma, and SBI also rose. On the flip side, Asia Paints, Tech Mahindra, Infosys, Wipro, and IndusInd Bank declined.
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In the broader market, the Nifty midcap and small indices jumped over 1 percent. BSE smallcap and midcap indices also logged decent gains on the week's last trading session before three holidays. "The ‘sell-on-rally’ market construct is likely to change in October. October is usually a favourable month, both for the US and Indian markets. There are indications that this historical trend may play out this October too," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Here are three factors that pulled the Nifty and Sensex up 1 percent on September 29, 2023.
What’s fuelling Nifty, Sensex rally?
Pharma stocks surge: Pharma stocks were on a high on September 29 rising up to 9.5 percent. The Nifty Pharma index jumped 3 percent with Glenmark Pharma being the biggest gainer. Shares of Aurobindo Pharma jumped nearly 6 percent. Shares of Dr Reddy's and other pharma companies including Abbott India, Torrent Pharma, Divi's Lab, Gland Pharma, Glaxosmithkline Pharma, Granules, Alkem Lab, Sun Pharma, Cipla, Zydus Lifesciences, Natco Pharma, Laurus Labs, IPCA Labs, Biocon and Sanofi also rose up to 3 percent on Friday.
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Auto stocks rise: Auto stocks were trading higher on September 29 ahead of monthly sales data. Shares of Tata Motors, Hero MotoCorp, Ashok Leyland, and Bajaj Auto jumped up to 2.7 percent, taking the Nifty Auto index up half a percent. Auto stocks are also in focus ahead of the festive season. The gains in auto stocks contributed to Nifty gains. Axis Securities sees more optimism in the dealers of the passenger vehicle (PV) segment with robust demand for utility vehicles (UVs) during the festive season.
Easing Headwinds: According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the ‘triple whammy’ of up-trending dollar, US bond yields and Brent crude is showing signs of easing. "If this trend continues it will facilitate a recovery in markets. Stability in the US market yesterday also can be a supportive factor," he said.
Also Read | Pharma stocks surge up to 9.5% on fresh hopes in US; Glenmark leads rally
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