News

Published: December 9, 2023
Updated: December 9, 2023

Nifty's Spectacular Rally: RBI's Pause Fuels Record Highs Amidst FPI Surge

In a dazzling display of strength, the Nifty achieves an impressive winning streak, marking its longest in three years. This surge is fueled by the Reserve Bank of India's (RBI) decision to maintain the repo rate while upgrading the economic growth forecast, resulting in record- breaking highs for Nifty and Sensex.

Record Highs Propel Markets: RBI's Forward Guidance

As the RBI's rate-setting committee opts for stability, the Nifty and Sensex set new records, with Nifty hitting an all-time high of 21,006.10 and Sensex surging to 69,893.80. FPI buying plays a pivotal role, with net purchases reaching ₹3,632.30 crore.

Bank Nifty Hits Fresh Peaks: Sectoral Impact

Bank Nifty isn't left behind, reaching a fresh high of 47,303.65, emphasizing the broad-based impact of the market rally. Analysts, however, remain cautious, with the upcoming Fed meeting serving as a potential market trigger.

Longest Winning Streak in Three Years: Nifty's Remarkable Ascent

Nifty logs its most extended winning streak in three years, demonstrating resilience and market optimism. Despite near-term uncertainties, the index reaches new heights, closing at 20,969.40, and Sensex at 69,825.60.

RBI's Steady Hand: Impact on Financial Markets

The Monetary Policy Committee's decision to keep the repo rate unchanged at 6.5% aligns with market expectations, but the market welcomes the 50-basis point hike in the GDP forecast. This move contributes to the upbeat sentiment and drives the Nifty to fresh records.

Market Dynamics: FPIs and DIIs Play Divergent Roles

FPIs continue their resurgence, net purchasing shares worth ₹3,632.30 crore, while DIIs take a selling stance with shares worth ₹434.02 crore. This divergence in activity hints at varying market outlooks.

Analysts' Divergent Views: Prospects for the Near Term

Market analysts offer diverse perspectives on the immediate future. While some foresee the Nifty heading to 22,000, citing revived FPI buying, others anticipate a consolidation phase within the 20,850-21,050 range.

Software Sector Dominates Gains: Key Contributors

Friday's gains are dominated by the software sector, with companies like Infosys, LTI Mindtree, and HCL Technologies leading the charge, each experiencing notable increases between 1.72% and 2.72%.

Charting the Course Ahead

As the Nifty's winning streak unfolds and records are shattered, the market remains on a trajectory influenced by various factors. While optimism prevails, caution is advised, and the upcoming Fed meeting holds the potential to steer market dynamics.