Indian markets defy global tech rout; pre-Muhurat rally strongest since 1992
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Benchmark indices S&P BSE Sensex and NSE Nifty 50 rallied sharply on Friday, defying a global sell-off in technology stocks, as sustained foreign fund inflows and easing crude oil prices lifted investor sentiment. The Sensex climbed 1,718.01 points, or 2.17%, to close at 81,028.02, while the Nifty 50 advanced 493.75 points, or 2.01%, to settle at 25,030.35, reclaiming the 25,000 mark. Both benchmarks closed at their respective day's highs.
The gains extended the indices' winning run to seven consecutive sessions, marking a sharp recovery ahead of Sunday's Muhurat trading session. Over this period, the Sensex has gained 7,781.99 points, or 10.62%, while the Nifty has advanced 2,331.50 points, or 10.27%.
Strongest pre-Muhurat weekly rally in historical series
Weekly historical data for the Sensex and Nifty, compared with the run-up to each year's Muhurat trading session since 1992, shows that the latest one-week advance is the strongest in the available historical series for both benchmarks.
In the week ended November 6, the Sensex gained 8.82%, while the Nifty rose 8.58%. The gains also mark the strongest weekly advance for both indices since February 2021.
The Nifty closed at its highest level since February 27, recovering above 25,000 for the first time in several months.
Foreign investor buying has been a key support for the rally. Foreign institutional investors (FIIs) bought equities worth ₹14,974.68 crore on Thursday, their biggest single-day net purchase in nearly six years, according to exchange data. Brent crude, the global oil benchmark, declined 1.50% to $96.82 per barrel on Friday, easing concerns around India's import bill and inflation.
The rally came even as global markets witnessed a sharp technology-led sell-off. On Thursday, the Nasdaq Composite tumbled 5.52%, the S&P 500 dropped 4.36% and the Dow Jones Industrial Average declined 3.44%. In Asian markets on Friday, South Korea's Kospi fell 6.02% and Japan's Nikkei 225 dropped 5.96%, while Shanghai and Hong Kong markets also ended lower.
"Indian equities defied a global rout, extending their winning run as investors treated the home market as a relative safe harbour amid turmoil abroad. Wall Street was hammered by a sharp tech sell-off as investors weighed the prospect of tougher regulation under Democrats," said Vinod Nair, Head of Research at Geojit Investments.
M&M, banks lead Friday's gains
Among Sensex constituents, Mahindra & Mahindra was the biggest gainer, rising 6.15% after reporting a 25% increase in consolidated profit after tax to ₹4,587.88 crore for the September quarter. ICICI Bank , HDFC Bank , Titan, Axis Bank and Kotak Mahindra Bank were also among the major gainers. Power Grid was the only Sensex constituent to close lower.
The broader market, however, showed some divergence, with the midcap index ending marginally lower even as heavyweight stocks drove the benchmark indices higher.