Millennium Post

Sensex soars 524 pts on RIL push; logs weekly gains

Mumbai: Equity benchmarks darted up for the second straight day on Friday, boosted by market heavyweight Reliance Industries which soared to a record high after announcing it has become net-debt free.

A positive trend in global markets further bolstered investor sentiment, traders said.

After soaring 640.32 points during the day, the 30-share BSE Sensex settled 523.68 points, or 1.53 per cent, higher at 34,731.73.

Similarly, the broader NSE Nifty surged 152.75 points, or 1.51 per cent, to close at 10,244.40.

During the week, the Sensex rallied 950.85 points or 2.81 per cent, while the Nifty advanced 271.50 points or 2.72 per cent.

Reliance Industries Ltd (RIL) was the star performer in Friday's session, spurting over 6 per cent to its all-time high after Mukesh Ambani said his flagship firm is now net-debt free following a record Rs 1.69 lakh crore fundraising in under two months.

Other Sensex gainers included Bajaj Finance, PowerGrid, ICICI Bank, Maruti, Axis Bank and SBI.

On the other hand, IndusInd Bank, HCL Tech, ITC, M&M HDFC and Infosys shed up to 2.94 per cent.

According to analysts, besides stock-specific action, rally in global markets and fresh foreign fund inflows buoyed market sentiment.

"It has been good week for the global markets as positive sentiment on reopening the economies overshadowed reports of fresh COVID-19 cases in the US and China," said Sanjeev Zarbade, VP PCG Research, Kotak Securities.

Market mood was supported by a gradual resumption in business activities and an earlier-than-expected normalisation in certain consumption sectors, he noted.

Foreign institutional investors bought equities worth a net of Rs 366.57 crore on Thursday, provisional exchange data showed.

However, he added that "investors need to be cautious in the near-term and watch out for geopolitical developments between India and China on one hand and valuations on the other. Resurgence of COVID cases and reports of a second wave of infections are potential risks for the markets."

BSE realty, energy, oil and gas, telecom, industrials and power indices surged up to 6.36 per cent, while IT and consumer durables ended in the red.

Broader BSE mid-cap and small-cap indices jumped up to 1.37 per cent.

Global markets maintained their uptrend as investors focused on resumption of economic activities despite rising coronavirus cases in many regions.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a firm note.

Stock exchanges in Europe were trading significantly higher in early deals.

International oil benchmark Brent crude futures climbed 2.51 per cent to USD 42.55 per barrel.

On the currency front, the rupee settled 6 paise lower at 76.20 against the US dollar.

India on Friday saw another record spike of 13,586 new COVID-19 cases in a single day, pushing the tally to 3,80,532, while the death toll rose to 12,573, according to the Union Health Ministry data.

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