The Indian stock market made a spectacular comeback on Friday (October 17). After an initial lull, both the Sensex and Nifty saw strong gains by midday. Investors were left smiling, and the market regained its momentum. The Sensex jumped 484.53 points to close at 83,952.19, while the Nifty also gained 124.55 points to close above 25,700. Banking stocks were particularly strong, with the Bank Nifty rising 290.80 points to reach an all-time high of 55,713.35.
Nifty’s Top Gainers
Significant stocks in the Nifty pack, including Adani Power, Asian Paints, Mahindra & Mahindra, Max Healthcare, and Bharti Airtel, saw gains of up to 5%. Auto, FMCG, and healthcare stocks led the market, while mild profit-booking was seen in the IT and metal sectors.
Reasons for Market Rise
- Foreign Fund Purchases
Foreign institutional investors (FIIs) bought shares in Indian markets for the second consecutive day. On Thursday, FIIs purchased shares worth approximately ₹997.29 crore, while domestic institutional investors (DIIs) bought shares worth ₹4,076.20 crore. The continued influx of foreign funds strengthened both liquidity and investor confidence in the market.
- Decline in Crude Oil Prices
Brent crude fell 0.25% to $60.94 per barrel in the global market. The decline in oil prices reduces pressure on India’s import bill and keeps inflation under control. This provided significant support to the domestic market.
- Strengthening Rupee
The rupee strengthened by 21 paise against the dollar on Friday to 87.75. The weakness of the US currency and possible RBI intervention contributed to the rupee’s strengthening. This increase in the rupee helped boost foreign investor confidence.