Budget boost lifts India's Nifty 50 to fifth record high in 2024
Upstox
2 min read • Updated: February 2, 2024, 4:48 PM
Summary
Both benchmarks gained about 2% each this week, their best this year, led by large-cap stocks like Reliance Industries , which logged its best week since June 2022.
Feb 2 (Reuters) - India's benchmark Nifty 50 index hit an all-time high for the fifth time this year on Friday, lifted by gains in Reliance and information technology (IT) stocks, and as the government's fiscal prudence in its budget also boosted sentiment.
The NSE Nifty 50 index surged to a high of 22,126.80 points in the session before pulling back, due to selling pressure near the close, to settle 0.72% higher at 21,853.80. The S&P BSE Sensex gained 0.61% to 72,085.63.
Both benchmarks gained about 2% each this week, their best this year, led by large-cap stocks like Reliance Industries , which logged its best week since June 2022.
Reliance and Infosys -- two of the five heaviest-weighted Nifty stocks -- jumped about 2% each on the day.
Nine of the 13 major sectors logged gains, led by a 3.16% increase in energy.
As per experts, large-caps like Reliance and HDFC Bank have come to the fore in this leg of the rally. The allocations could shift further towards the segment from small- and mid-caps as investors seek safety in an expensive market.
The broader and more domestically focussed small- and mid-cap sub-indexes rose 0.93% and 0.37%, respectively.
The gains in mid-caps were capped by Paytm nosediving 20% for the second day in a row, since the central bank ordered its banking arm to stop taking fresh deposits.
Experts believe the government's fiscal prudence in its budget presentation on Thursday also aided market sentiment.
The IT index gained 2.16% ahead of key U.S. labour market data later in the day that could influence the timing of interest rate cuts.