Sensex Surges to New Highs on FPI Buying and IT Rally

The BSE Sensex and the Nifty50 hit fresh highs for the seventh straight week on Friday, driven by positive domestic and global cues. The Sensex closed 969.55 points or 1.37% higher at 71,383.75, while the Nifty50 ended with gains of 3% at 20,926.00.

FPI Buying Boosts Market Sentiment

The market sentiment was boosted by the strong buying interest from foreign portfolio investors (FPIs), who netted Rs 1,000 crore in the equity market on Friday. According to data from NSDL, FPIs were net buyers of Rs 1,000 crore in equities and Rs 2,000 crore in debt on Friday.

 IT Sector Leads the Rally

The IT sector was the top performer among the sectoral indices, rising over 3% on Friday. The index was supported by strong quarterly results from some of the leading IT companies such as TCS, Infosys, Wipro and HCL Tech. The index also benefited from the positive outlook for the global IT services market amid the recovery from the pandemic.

Other Factors that Impacted Market

Some of the other factors that impacted the market on Friday were:

- The easing of COVID-19 restrictions in some states such as Maharashtra and Tamil Nadu.

- The upbeat global cues from Wall Street and Asian markets.

- The positive domestic cues from auto sales data.

- The easing of oil prices after OPEC+ agreed to increase production gradually.

Looking Ahead

The market is likely to remain volatile in the near term as investors await key macroeconomic data such as GDP growth, inflation and industrial production for December. The market will also be watching out for any developments related to the Omicron variant of COVID-19 and its impact on global growth prospects.

Stay tuned for more updates on this exciting development in the world of finance.