GDP data, FIIs return spur Nifty to new high

Indian equities recorded their biggest weekly gains in five months as the benchmark Nifty scaled a new peak driven by encouraging GDP data and the return of FIIs.

The benchmark Nifty50 touched its lifetime high of 20,291.55 in intra-day trade before settling at 20,267.90, up 134.75 points or 0.67%. It was also an all-time high on a closing basis.

“Sunil Gavaskar, the greatest opening batsman, always took a fresh guard after reaching a milestone. It makes sense to take a fresh guard post the index reaching its all-time high. Undoubtedly, there will be few bouncers and yorkers that one has to be careful about. However, there are far more runs to be scored, as long as we can stay on the pitch,” said Nilesh Shah, MD and CEO of Kotak Mahindra AMC.

Both FIIs and DIIs were net buyers during the session, pumping in Rs 1,589.61 crore and Rs 1,448.08 crore, according to provisional data with the exchanges.

On Thursday, the last trading day of November, FIIs bought to the tune of Rs 9,744 crore ($1.17 billion), which was their largest single-day purchase in the past five months. On June 30, they had bought shares worth Rs 11,850 crore ($1.44 billion).FIIs bought a net $2.3 billion in Indian equities in November, after selling a net $5 billion in September and October. DIIs bought a net Rs 14,254 crore during November.

“The broader market outperformed, with mid- and small-caps displaying resilience and no signs of fatigue. Investors remain optimistic about government spending and heightened consumption, driven by easing inflation, propelling growth in H2FY24. Oil prices continued to move on the downside despite the Opec+ supply cut. The eagerly awaited exit polls also contributed positively, boosting investor sentiments towards the current Union government,” said Vinod Nair, Head of Research at Geojit Financial Services.

A total of 2,109 stocks advanced on the BSE, while 1,638 declined. All BSE sectoral indices except auto closed in the green, while telecommunication closed flat. Oil & Gas, power, and energy were the biggest weekly gainers, rising over 5% each.Among broader indices, the BSE midcap and smallcap also rose 0.96% and 0.86% to close at 34,587 and 40,566, respectively.The market cap of BSE-listed firms rose Rs 2.07 trillion to Rs 337.7 trillion.