Markets surge to record highs powered by Reliance, IT stocks

• Nifty surpassed 21,900 mark for the first time on Friday, touching a record high of 21,928.25.
• Sensex surged to a new high of 72,720.96.
• Reliance Industries breached ₹18 lakh crore market cap on Thursday.
• The Nifty Realty surged over 5% this week.

It’s that time of the week again! From soaring IT stocks to Reliance Industries breaching a new market cap milestone, here’s another quick recap of what happened in the markets.

The key benchmark indices closed the week with gains amid the consolidation phase. The stock markets rose for four straight days this week. The headline-grabbers were billionaire Mukesh Ambani-led Reliance Industries and the IT giants like TCS and Infosys.

Sensex closed the week at 72,568.45, up 847 points, or 1.18%, on Friday. Nifty settled at 21,894.55 with a gain of 247 points, or 1.14%. The key benchmark indices regained the losses of last week as Nifty and Sensex extended the gains for the fourth consecutive session on Friday.

Benchmark indices recover losses

The key indices had closed the previous week on a losing note amid concerns over high valuation of Indian stocks that could keep investors at bay.  Profit-taking after a record-breaking run by domestic investors also added to the volatility.

High valuation concerns continued to mar Indian stocks at the outset on Monday. Weak global markets dragged Indian stocks down by around 1%. FMCG, commodities, banking and metal shares took the hit.

However, select heavyweights like Reliance Industries, ICICI Bank and HDFC Bank provided a balancing act to the ongoing consolidation mid-week.

Stock markets gained in a range-bound trade on Wednesday and Thursday as investors awaited IIP and US inflation data for further direction. Nifty traded near its key resistance level of 21,700 while finding major support at 21,600.

IT giants Infosys and TCS provided a major trigger on Friday as they beat street estimates for the third quarter financial results.

Nifty and Sensex found their mojo back with the broader 50-issue index going past its major resistance levels. Nifty touched a record high of 21,928.25 in intra-day trade.

While IT companies topped the chart, oil and metal shares also aided the rally on Friday. Midcap and small-cap shares advanced during the week gaining up to 2%.

Among sectoral indices, realty, auto, metal, banking, consumer durables and oil & gas were the winners. FMCG and pharma lost steam.

Reliance Industries surpasses ₹18 lakh crore market cap

India’s most valued company Reliance Industries hit a fresh 52-week high on Wednesday. Reliance shares rallied after analysts raised their bets on the stock.

The gains in Reliance Group companies catapulted its promoter, billionaire Mukesh Ambani, to the coveted club of business tycoons with a net worth of at least $100 billion. Also, Reliance Group companies breached the combined market valuation of ₹20 lakh crore.

IT shares zoom

Shares of IT firms rebounded on Friday. Nifty IT rallied more than 5%. This was aided by Indian IT giants, TCS and Infosys, beating street estimates for the third quarter financial results.

Infosys went up by more than 7%, Coforge over 5% and TCS gained over 4% on Friday following Q3 results.

Realty shares on the up

Realty shares soared this week on strong residential sector growth of 21% year-on-year. The decadal high of absorption level across seven major cities also aided the rally.

Amid major gainers, Macrotech Developers Ltd saw a 26% hike in the past month. DLF, Brigade, Sobha Ltd and Prestige Estates also advanced amid a bullish outlook. Analysts expect India's realty sector to continue its upward march in 2024 as well.

The Nifty Realty surged over 5% this week.

What lies ahead

US inflation inched up to 3.4% YoY in December which could be a concern for global markets. As expectations of a rate cut by the US Federal Reserve shift to June from as early as March, rate-sensitive Indian stocks could bear the brunt.

Financial results would be a major domestic trigger next week after TCS and Infosys posted better-than-expected numbers. All eyes would be on HDFC Bank, which is declaring Q3 numbers on January 16. IndusInd bank, Asian Paints, Paytm and Polycab are among the corporates releasing their numbers next week.

As for us, we’ll see you again on Saturday!