Sensex zooms 2000 pts; Nifty atop 23,900; What's driving the markets today?

Index heavyweights ICICI Bank, Reliance Industries, SBI and Infosys lead the market rally, contributing nearly 40 per cent of the day's gain on Friday

Domestic benchmark indices Sensex and Nifty rallied strongly on Friday (November 22) led by index heavyweights. The BSE Sensex zoomed 2,062 points or 2.6 per cent and recorded an intraday high at 79,218.19. While the NSE Nifty soared to a high of 23,956.10.  The BSE Sensex finally ended the day with a solid gain of 1,961 points or 2.5 per cent at 79,117, and the NSE Nifty 50 index signed-off at 23,907 - up 557 points or 2.4 per cent.  Buying in Adani shares lifts sentiment

  Deepak Jasani, Sr. VP - head retail research at HDFC Securities believes that one of the reasons for the recovery in the market was gains in Adani Group stocks after Thursday's sharp fall. Yesterday Adani shares ended with massive losses after the Group chair Gautam Adani was indicted in New York for his role in an alleged multibillion-dollar bribery and fraud scheme.

 

 

Around 1:40  PM, Adani Enterprises shares were up over 3 per cent, Adani Green Energy was up over half a per cent, Adani Ports was up over 3 per cent, Ambuja Cements was up over 4 per cent and Adani Power was up over half a per cent.

Heavyweights lead

BSE Sensex heavyweights ICICI Bank, Reliance Industries, SBI and Infosys were leading the market rally. These 4 index heavyweights collectively contributed nearly 40 per cent of the gains on the BSE benchmark.

 

Among top movers - SBI surged nearly 5 per cent to Rs 818. JSW Steel, UltraTech Cement, Bajaj Finance, Adani Ports, Titan, ITC, Larsen & Toubro, HCL Technologies, TCS and Bharti Airtel traded with gains in excess of 2 per cent each.  Also read: Enviro Infra Engineers IPO opens today: GMP up 26%; Should you subscribe?

Technical bounce

As per Gaurang Shah, head investment strategist, Geojit, the market is trying to find its bottom.

 

"The market is in an oversold zone and is trying to find its bottom of near 23,300-23,000 levels," said Shah.

 

"Some value buying is being seen in the markets today, but we are not of correction", he added.

Positive global cues

Meanwhile, global markets also boosted confidence. The US markets on Thursday closed higher with the Dow Jones up 1.06 per cent, the S&P 500 up 0.53 per cent, and the Nasdaq Composite flat with a positive bias.

 

Asian markets were also largely trading positive with Japan's Nikkei up 0.68 per cent. However, China's indices slipped, with CSI 300 and Shanghai down over 3 per cent. Hong Kong's Hang Seng was also down 2.14 per cent.  That apart, the United Kingdom's FTSE was also up 0.79 per cent.

 

Furthermore, Jasani believes that the negative impact of the Russia-Ukraine war is over after Ukraine struck Russia with US-made missiles.

 

"The negative impact of the Russia-Ukraine war is over after Ukrainian forces carried out their first strike with US-made missiles and the market believes that the situation will not worsen from here," said Jasani.