Nifty hits new high amid hopes of December-quarter earnings revival

The United Kingdom's FTSE 100, Singapore's Straits Times Index, and South Korea's Kospi were among the other major indices that set new intraday records on Friday

Indian equities gained, and the benchmark Nifty hit new high amid gains in other peer indices and hopes of corporate earnings revival in the Dece­mber quarter. The benchmark Nifty ended the session at 26,329, again of 182 points or 0.7 per cent. The 50-share benchmark hit a new high on both the closing and intraday basis. Sensex, meanwhile, ended the session at 85,762, a gain of 573 points or 0.7 per cent. For the week, Sensex gained 0.9 per cent and Nifty 1.1 per cent. 

The UK’s FTSE 100, Singapore's Straits Times Index, and South Korea’s Kospi were among the other major indices that set new intraday records on Friday. Investors are hoping that measures such as the rationalisation of the goods and services tax and the Reserve Bank of India's rate cuts will be reflected in better corporate earnings for the December quarter. 

 

“The national market concluded the split week with optimism and touched a fresh all-time high. Strong momentum was observed in the auto and PSU banking sectors, while utilities saw sectoral rotation. Robust December auto sales indicate a broader uptick in economic activity during the festive-driven quarter. Improving asset quality and expectations of accelerated credit growth drew investor interest towards PSU banking stocks,” said Vinod Nair, head of research at Geojit Financial Services. 

Market breadth was strong, with 2,711 stocks advancing and 1,524 declining on the BSE. HDFC Bank, which rose 1.05 per cent, was the biggest contributor to index gains, followed by ICICI Bank, which rose 1.3 per cent. 

ITC, which fell 3.8 per cent, was the biggest drag. ITC declined in the past two sessions after the union government announced a new tax regime on tobacco products starting next month.

 

"Expectations around upcoming Q3 results and supportive policy measures in the Union Budget have helped lift overall sentiment. A key factor has been improved participation in the broader market, particularly selective buying in midcap stocks. We expect this positivity to continue into next week, supported by several companies announcing their pre-quarterly business updates," said Siddharth Khemka, head of research at Wealth Management at Motilal Oswal Financial Services. 

Foreign portfolio investors were net buyers worth ₹290 crore, and domestic institutions bought shares worth ₹677 crore.