NIFTY & Sensex less than 0.5% away from all time high, stage sharp V-shape recovery, here is why

During the afternoon session on Friday, the benchmark indices were trading in positive territory. The 30-share Sensex was trading up by 1,324.78 points or 1.76% at 76,375.82, while the NIFTY50 index rose by 381.30 points or 1.67% to trade at 23,202.70. The Bank Nifty is trading up by 558.50 points or 1.13% at 49,850.40. India VIX fell by 0.28% to 16.75.

Key Triggers for sharp rise in the markets

In the latest monetary policy decision, RBI Governor Shaktikanta Das announced that the benchmark interest rates remained unchanged at 6.5%. Four out of six MPC members voted in favour of the repo rate decision. Further, RBI projects real GDP growth at 7.2% for FY25.

Indian equities also extended gains for the third consecutive session as the Telugu Desam Party (TDP), the NDA ally, plays a vital role in forming the next government under Narendra Modi.

All of the sectoral indices were trading in green with the top-gaining sectors being Nifty IT (+3.01%), Nifty Media (+1.62%), and Nifty Realty (+1.60%).

Regarding the broader markets' performance, the Nifty Midcap 100 and Smallcap 100 indexes were seen trading higher at over 0.95% and 1.69%, respectively. Market breadth remained strong with over 2,060 stocks seen advancing, while 426 stocks were seen trading in decline.

On Wall Street, Dow Jones futures were seen trading in green with a gain of 87 points or 0.22% to 39,043.

In the afternoon session on the Nifty 500 index, some trending stocks were Mastek Ltd, Amara Raja Energy & Mobility Ltd, and Sobha Ltd.