Indian shares hit a three-week high in a one-hour special “muhurat” session on Sunday, marking the Diwali festival, on gains in the energy and information technology (IT) sectors.
The Nifty 50 index closed 0.52 per cent higher at 19,525.55, its highest level since October 20, while the S&P BSE Sensex rose 0.55 per cent to 65,259.45. Both posted their second straight week of gains on Friday. Many traders believe that profits made during “muhurat”, which means “good luck” in Hindi, will bring prosperity and wealth in the coming year.
Since last Diwali, the Nifty was up 10.5% till the last close, thanks to stable macroeconomic fundamentals and increased participation by individual investors.
“India is in an ideal situation among emerging economies, with relatively better growth prospects,” said Deven Choksey, managing director of DRChoksey FinServ, adding that a pre-election rally of 10-15% is possible in the Nifty 50 in mid 2024. .
All 13 major sectors posted gains in this special session, with Financial and Information Technology (IT) shares rising 0.44% and 0.72% respectively.
The energy index rose 0.79% and was one of the best performing sectors.
Indian coal rose 2.6% and was the biggest gainer on the Nifty 50 after beating profit expectations in the second quarter, helped by strong power demand.
BSE jumped 5.7% and hit a record high on the back of good quarterly results.
Real estate values rose 0.6% to reach a record level. The sector has hit new highs over the past two weeks, supported by strong gains.
“Profits of real estate companies are expected to increase in the future, supported by stable demand and interest rate outlook in India,” said Gaurang Shah, senior vice president at Geojit Financial Services.
More domestically oriented small and midcap companies rose 1.14% and 0.61%, respectively, after outperforming the Nifty 50 year-to-date, driven by strong capital inflows into the retail sector.
