The BSE Sensex zoomed to an all-time high on Friday, crossing the historic 71,000 mark for the first time. The record rally comes on the back of a risk-on sentiment globally following assurance of an eventual pause in US Fed rate hikes.
By mid-morning, the Sensex had added 460 points to sit at an unprecedented 70,975 level. The NSE Nifty mirrored the surge, trading above the 21,300 level in intraday deals.
Frontline indices charged ahead as investors pivoted back into rate-sensitive stocks. IT, metal, and media shares saw buoyant activity with gains between 1-1.5%.
Infosys, TCS, HCL Tech, and Wipro drove nearly 200 points of the Sensex rally. JSW Steel, Tata Steel, Tech Mahindra, and Sun Pharma also aided upside momentum.
Meanwhile, Kotak Bank, Bajaj Finance, ITC, and select FMCG majors proved to be relative laggards. But overall market breadth remained firmly positive.
The risk-on move follows the US Fed signaling potential policy easing by 2024 earlier this week. The dovish outlook has fired up emerging market peers with the Sensex now gaining over 5% in December 2022 alone.
While some analysts advise caution at stretched valuations, the history-making run continues for domestic indices as the Santa rally adds further froth this holiday season.
The focus now turns to RBI’s rate decision next week where any shift in stance could provide the next trigger for bulls to propel domestic indices even higher up.
