Despite declines in global stock markets, the Indian stock market demonstrated impressive momentum on Friday. Active buying occurred in the Sensex and Nifty indices, with both indices closing for the seventh consecutive working day with gains.
The Sensex increased by 1718 points, reaching above 81000, while the Nifty jumped by 493 points, once again surpassing the 25000 mark. The positive market sentiment was driven by consistent purchases from foreign investors and falling crude oil prices.
Of particular note is that the growth of the Indian market continued even as American and Asian markets experienced significant declines. On Friday, the BSE Sensex, comprising 30 stocks, closed at 81028.02 with an increase of 1718.01 points, representing 2.17% for the trading day. Meanwhile, the NSE Nifty, which includes 50 stocks, rose by 493.75 points, or 2.01%, concluding trading at 25030.35. Both indices showed growth over seven consecutive working days.
Over the last seven trading sessions, the Sensex grew by a total of 7781.99 points, corresponding to an increase of 10.62%. During the same period, the Nifty showed a rise of 2331.5 points, or 10.27%. Furthermore, the Bank Nifty demonstrated a rise of 1312.35 points and closed at 59086 at the end of the trading day.
The wave of growth in the stock market has been continuing for several sessions. On Thursday, the Sensex also showed a significant jump of 2008.61 points, or 2.60%, closing at 79310.01. The Nifty also rose by 576 points, or 2.40%, reaching 24536.60. Thus, strong growth in two consecutive trading sessions pushed the market to a new level. On Friday, the Sensex managed to cross the 81 thousand mark, and the Nifty crossed the 25 thousand mark.
Among the 30 companies in the Sensex, Mahindra & Mahindra (M&M) shares showed the largest growth, increasing by 6.15%. The company announced its third-quarter results for September on Thursday. The company's net profit after tax (PAT) for the quarter from July to September grew by 25%, reaching 4.587.88 billion rupees. The results were supported by strong sales and revenue growth in the company's automotive segment. Additionally, shares of ICICI Bank, HDFC Bank, Titan, Axis Bank, and Kotak Mahindra Bank were also rising. Only Power Grid shares closed lower among the Sensex constituents.
A significant reason for the market's growth was the activity of foreign investors. According to exchange data, Foreign Institutional Investors (FIIs) made a net purchase of shares in the Indian stock market worth 14,974.68 crore rupees on Thursday. Moreover, the decline in international crude oil prices provided relief to investors. Brent Crude fell by 1.50%, settling at $96.82 per barrel. Since India imports a significant portion of its needs from abroad, the drop in commodity prices is expected to reduce pressure on the import bill and inflation in the country.
The rise in the Indian market occurred while many major global stock markets struggled with downturns. On Thursday, there was a mass sell-off in American markets. The Nasdaq Composite fell by 5.52%, the S&P 500 declined by 4.36%, and the Dow Jones lost 3.44%. Pressure was also felt in Asian markets. South Korea's Kospi fell by 6.02%, and Japan's Nikkei 225 closed with a decline of about 5.96%. The Shanghai Composite and Hong Kong's Hang Seng also fell by more than 1%.
European markets remained weak during trading.
According to Vinod Nayar, head of research at Geojit Investments, investors view the Indian stock market as a relatively safe alternative amid turmoil in foreign markets. Investor anxiety in American markets intensified due to massive sales of technology stocks and fears of strict regulation by Democrats. In contrast, growth in India was supported by foreign investor purchases and positive domestic signals.
