Adani recovery, BJP optimism drive Sensex's biggest rally in 5 months

The Indian stock market surged on Friday, with benchmark indices achieving their largest single-day rise in over five months, driven by sector-wide buying and a strong rebound in Adani group stocks. At close, the Sensex was up 1,961.32 points or 2.54 percent at 79,117.11, and the Nifty was up 557.35 points or 2.39 percent at 23,907.25.
Market experts reportedly stated the Adani bribery case weighed on sentiment on Thursday, preventing the market from discounting a probable BJP-led Mahayuti win in the Maharashtra Assembly Election, as exit polls indicate. Friday's rebound suggests the market has moved past the Adani issues and is looking ahead, said traders. For the week, BSE Sensex and Nifty50 added 2 percent and 1.6 percent, respectively.
State Bank of India, TCS, ITC, UltraTech Cement, and Titan Company were the top gainers on thee Nifty. However, Bajaj Auto was the only loser. BSE Midcap index added 1.3 percent and Smallcap index rose nearly 1 percent. On the sectoral front, all the sectoral indices ended in the green with PSU Bank, IT, FMCG, energy, realty up 2-3 percent.
Market This Week:
●Market snaps 2-week losing streak, regains half of last week’s losses,
●All sectoral indices except Media & Energy give positive returns,
●All frontline indices (Sensex, Nifty, Midcap & Nifty Bank) up nearly 2 percent
Rupee Close:
On 22 Nov'24,the Indian rupee recovered from its all-time low level and appreciated 6 paise to close at 84.44 against the US dollar on Friday, supported by positive domestic equities.Forex traders reportedly stated the rupee is trading in a narrow range as the US dollar strengthened in the overseas market and Brent oil continued to move up as fighting between Ukraine and Russia continued to gain investors' attention. Moreover, foreign institutional investors have continued their equities selling mode and kept the dollar well bid.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying,the market witnessed a significant broad based rally, from the oversold territory, predominantly led by large-cap stocks, as their valuations appeared appealing with expectations of improvement in corporate earnings in the second half of the fiscal year. Positive momentum was also observed in global markets, due to modest decline in Japan's October inflation and 39 trillion yen stimulus package. Moderation in global & domestic political drama provided a relief to the domestic market.
Market experts have recommended five shares to buy- Power Grid Corporation of India Ltd, Jindal Steel & Power Ltd, GAIL India Ltd , Divi's Laboratories Ltd and Amber Enterprises India Ltd.

( Business Correspondent)