Benchmark indices logged new highs amid robust GDP growth for the third quarter and positive global cues.

The Indian economy grew 8.4 per cent in Q3FY24, led by strong industrial performance and an impetus on infrastructure building. The US Core PCE inflation edged lower to 2.8 per cent, raising hopes it will lead to interest rate cuts sooner than later by the Fed.

The Sensex rose 1,245 points, or 1.7 per cent, to 73,745, while the Nifty settled at 22,339, up 356 points. Bank Nifty surged more than 2.5 per cent, with IndusInd Bank and ICICI Bank the top gainers. The Nifty Midcap 100 and Smallcap 100 Indices underperformed the Nifty, gaining by 0.94 per cent and 0.52 per cent, respectively.

Losers and gainers

The advance decline ratio stood at 1.62 levels on BSE. Tata Steel (6.5 per cent), JSW Steel (4.5 per cent), and L&T (4.5 per cent) were the top Nifty gainers. Dr. Reddy’s Laboratories was the top loser, sliding 3.6 per cent. Metals, banking, and auto sectors gained the most, while media, pharma, and IT ended in the red.

Domestic institutions bought shares worth over ₹3,800 crore on Friday, while FPIs were net buyers marginally.

Vinod Nair, Head of Research, Geojit Financial Services, said: “Better than expected GDP numbers and ease in US inflation added buoyancy in both domestic and global markets. As the general election draws closer, stellar economic growth data raised confidence among investors for a pre-election rally. On the global front, in-line US personal consumption expenditure data and benign Euro zone inflation will influence global central banks to take a dovish view on interest rates.”

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Most Asian peers ended in red on Friday. Japan’s Nikkei 225 rose 1.9 per cent. The US markets surged to record highs on Thursday following an in-line January inflation report.

A long bull candle was formed on the daily chart at the new highs. The next upside targets to be watched are around 22500-22600 levels. Immediate support is at 22200 levels, according to experts.

“The short-term trend of the Nifty remains positive, and the sharp upside breakout of Friday is expected to continue in the coming sessions. This market action is indicating that the market is ready to zoom above the hurdle of 22200-22300 levels decisively. The positive chart pattern, like higher tops and bottoms, is intact,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.