Sensex climbs over 800 points, Nifty reclaims 23,600; banks, IT lead gains

Indian benchmark indices surged on Friday, with the Sensex jumping 804 points or 1.04 per cent to trade at 77,960, while the Nifty50 reclaimed the 23,600 mark, rising 1 per cent at 10:14 AM. Banking and IT stocks led the recovery after markets hit five-month lows in the previous session.

Among Sensex constituents, State Bank of India (SBI), ICICI Bank, Tata Motors, Power Grid, IndusInd Bank, and NTPC opened higher, driving market sentiment. However, Adani Group stocks remained under pressure following allegations of bribery and fraud against Gautam Adani. Adani Green Energy plunged nearly 8 per cent, while Adani Energy Solutions dropped 7 per cent.

Broader market dynamics

Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, explained, “The market’s correction of about 11 per cent from the September peak is not a crash but a correction. While the broader market appears strong, this strength is due to liquidity, not fundamentals. Large-caps in banking and IT remain safe bets, while FMCG, metals, and oil & gas are weak.”

Global cues and crude oil

In Asia, chipmakers propelled stocks higher, with Taiwan and South Korea gaining over 1 per cent each. The Nikkei rose 0.8 percent. Meanwhile, Brent crude futures climbed 0.2 per cent to USD 74.37 per barrel, as geopolitical tensions heightened following Russia’s missile strike on Ukraine.

Currency Market Update; Rupee hits record low

The Indian rupee weakened to 84.4975 against the dollar, its lowest level on record, as sustained foreign outflows and geopolitical risks weighed on the currency.

FII/DII activity

On November 21, foreign institutional investors (FIIs) sold equities worth Rs 5,300 crore, extending their selling streak to 37 days, while domestic institutional investors (DIIs) purchased equities worth Rs 4,200 crore.

Market outlook

Dr. Vijayakumar added, “The US markets remain bullish with a 25.43 per cent YTD return. India’s undertone is positive, but sustained recovery faces headwinds. Investors should focus on fundamentally strong large-caps.”