FPJ News Service mumbai

The domestic securities market continued its upward momentum for the third consecutive session on Friday, reaching a new 52-week high, largely driven by consumption-oriented stocks. Reflecting the upbeat sentiment, the 30-share BSE Sensex had crossed the 84,000-mark before closing 484.53 points higher at 83,952.19. During the day, it surged 705 points to 84,172.24.  The 50-share NSE Nifty climbed 125 points to close at 25,709.85 after surpassing 25,700.

“However, there are some lingering concerns which should not be lost sight of. China has been imposing restrictions on exports of rare earth metals and magnets. China’s weaponization of rare earths, in which it has around 90% global market share, is in response to Trump’s weaponization of tariffs. Unfortunately, if this lingers, it will hurt all nations, including India,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

“The market is technically strong, and price movement in pivotal stocks indicate short-covering. There are big shorts in the system, and the market strength might keep bears on the back foot, facilitating further short-covering. Good results from the banking majors and other large corporates can sustain the momentum for some more time. Muhurat trading and the festival cheer can add to the bullish spirits. “Q2 earnings from banks, and signs of easing asset quality stress have bolstered overall industry optimism. Conversely, the IT index has faced pressure due to concerns over discretionary spending and rising asset quality risks in the US banking system,” Dr VKV pointed out.

“Global economic disruptions like escalating trade war and slowing economic data have made investors jittery, prompting them to seek refuge in gold, which has surged to a new all-time high. Despite these global uncertainties, the resilient domestic economic performance has bolstered investor sentiment, keeping Indian equities largely insulated." Vinod Nair, head of research at Geojit Investments.