Recovery in global market supports India stocks, Sensex closes over 800 points up

New Delhi [India], August 9 (ANI): Indian stock markets started Friday’s session with a strong rally as buyers returned to both the Nifty and Sensex indices. The indices kept their gains intact and closed the week handsomely higher.

Sensex jumped over 800 points to 79,705.91 points, while rose 250 points to 24,367 points. All Nifty sectoral indices were in the green, with Nifty media, Nifty PSU bank, Nifty It, and Nifty auto rising the most, NSE data showed.

“The markets started strong, gaining over a percent, buoyed by positive global cues… Global volatility is leading to erratic market swings, keeping traders on edge. We recommend a cautious approach until Nifty decisively closes above the 24,500 level. In the meantime, certain sectors and themes are showing resilience, so traders should adjust their positions accordingly,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

“Positive US jobless claims data eased the fears of recession and provided a favorable broader market reaction. The IT index outperformed in expectation of improved spending. Though the sentiment is gaining traction, a lack of fresh triggers and subdued earnings will be a deterrent to higher valuation. To safeguard the sentiment, investors are advised to shift their focus from growth stocks to value stocks,” said Vinod Nair, Head of Research, Geojit Financial Services.

Global markets also reflected optimism, with US stocks surging on Thursday after better-than-expected jobless claims.

On Thursday, the domestic indices fell following the Reserve Bank of India’s (RBI) monetary policy announcement. The Sensex dropped 581.79 points to 78,886.22, while the Nifty 50 closed 180.50 points lower, or 0.74 per cent, at 24,117.00.

Going ahead, inflation data for July will be widely eyed, scheduled to be released early next week.

India’s overall retail inflation rate hardened in June, taking a departure from the moderation it witnessed in the past few months, pushed by rising food prices.

The retail inflation for all segments of food–cement and products, meat and fish, egg, milk and products, oils and fats, fruits, vegetables in particular, pulses and products, sugar, spices, prepared snacks, and sweets–rose month-on-month.

Rising food prices continued to be a headache for Indian consumers, with the inflation rate in the food segment almost doubling year-on-year in June. Food inflation almost doubled to 8.36 per cent last month, versus 4.63 per cent reported in the same month of 2023, official data showed.