Sensex Hits 4.5-Month High, Soars 900 Points..

Mumbai : The Indian stock market witnessed a strong rally on Friday, with the Sensex surging over 900 points to trade around 81,100 — its highest level in four and a half months. The Nifty also saw significant gains, rising by more than 200 points as positive sentiment gripped Dalal Street amid strong buying in auto and banking stocks.

Investors showed renewed confidence in blue-chip stocks, particularly in sectors that had been under pressure in previous sessions. Auto stocks led the rally, supported by expectations of strong sales figures for the upcoming quarter, along with optimism around demand recovery in rural markets. Banking stocks followed closely behind, buoyed by reports of improving asset quality and loan growth in major private and public sector banks.

The rally is also being attributed to global cues, as U.S. and European markets closed higher overnight, easing concerns about interest rate hikes by the Federal Reserve. The Indian rupee also held steady against the U.S. dollar, adding to market stability and improving foreign investor sentiment.

Domestic institutional investors (DIIs) were major buyers during early trade, while foreign institutional investors (FIIs) showed signs of return after weeks of outflows. Analysts suggest that the index breaking past 81,000 is a bullish indicator and may trigger further upside momentum, especially if global economic data remains favorable.

On the sectoral front, apart from auto and banking, capital goods, infrastructure, and FMCG stocks also witnessed increased buying interest. However, IT and pharma stocks remained relatively muted due to global uncertainty in export demand.

With this surge, investor wealth saw a significant increase as the market capitalization of BSE-listed companies rose sharply. Experts are advising short-term traders to remain cautious around resistance levels but believe long-term fundamentals remain intact.

Overall, today’s rally signals growing investor optimism driven by strong earnings expectations, steady economic indicators, and a supportive global environment. If this trend continues, Indian equities may be poised for another leg of growth in the near future.