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

Benchmark indices rose on Friday as optimism over December-quarter corporate earnings, rate cuts and tax rationalisation lifted sentiment, with Nifty and Sensex closing at record highs

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

 

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.

 

 

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.

 

“National markets 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 on the indices. ITC has declined over 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 mid-cap 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, while domestic institutional investors bought shares worth ₹677 crore.