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Published: Feb 8, 2023
Updated: Feb 8, 2023

Sensex Soars to New Heights Amid Lower Rates and Fed Optimism

The Indian stock market witnessed a major boost as the Sensex posted its largest single-day gain in nearly three months on Friday. The benchmark index rose 909 points, or 1.52%, to close at 60,842, marking a fifth consecutive day of gains. Meanwhile, the Nifty50 index climbed 244 points, or 1.38%, to settle at 17,854, following a tumultuous week.

Investor Optimism on the Rise

Investor optimism was high this week as most global markets have been on an upward trend due to the belief that the Fed's rate hikes are coming to an end soon. The Fed Chair, Jerome Powell, stated that the US central bank has made progress in controlling inflation and that there could be a "couple" of more interest rate increases before a halt to their aggressive tightening campaign.

Adani Stock Rout Eases, Market Breadth Remains Weak

The intense selling pressure seen in Adani group stocks showed signs of easing. Shares of Adani Enterprises finished 2.2% lower at Rs 1,531, recovering more than 50% from the day's low. Adani Ports saw a gain of 5.6% over the previous day's close. However, other Adani group stocks, such as Adani Total Gas, Adani Green Energy, Adani Power, Adani Transmission, and Adani Wilmar, hit their lower trading limits.

Despite the boost in the Sensex, the overall market breadth remained weak with 1,237 stocks advancing and 2,310 declining. Foreign portfolio investors continued their selling spree, selling shares worth Rs 932 crore, while domestic investors were net buyers, purchasing shares worth Rs 1,265 crore.

Top Performers in the Market

Among the Sensex stocks, Titan saw the largest gain of 6.9%, followed by Bajaj Finance and Bajaj Finserv, which rose over 5% each. HDFC Bank, with a 3.5% gain, contributed 214 points to the Sensex gains.

Sensex bullish

The Indian stock market experienced a significant boost as the Sensex posted its largest single-day gain in nearly three months on Friday. The optimism about the Fed's rate hikes ending soon and lower policy rates enthused equity markets, leading to the boost in the Sensex. However, the overall market breadth remained weak, with foreign portfolio investors continuing to sell and only a few Sensex stocks seeing gains.