Stock market today: The BSE Sensex surged 741 points whilst Nifty closed above 23,500 on Friday, driven by substantial buying in Larsen & Toubro following its Q3 results and the Economic Survey‘s forecast of a growth-oriented budget. The BSE Sensex rose 740.76 points (0.97%) to 77,500.57, reaching an intraday peak of 77,605.96. The NSE Nifty advanced 258.90 points (1.11%) to 23,508.40, touching 23,546.80 during trading.
The Economic Survey presented in Parliament on Friday projects India’s GDP growth at 6.3-6.8% for 2025-26, supported by robust fundamentals, measured fiscal consolidation and steady private consumption.
The survey stated: “…the fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption. On balance of these considerations, we expect that the growth in FY26 would be between 6.3 and 6.8 per cent.”
Among the Sensex constituents, Larsen & Toubro gained 4.31% after reporting a 14% increase in consolidated profit after tax to Rs 3,359 crore. Nestle rose 4.25% following its announcement of Rs 688.01 crore net profit for December 2024 quarter. Other notable gainers included IndusInd Bank, Titan, Tata Motors, and Tata Steel.
The Economic Survey highlighted concerns about elevated stock market valuations, noting potential risks from US market corrections affecting India’s markets, which have seen increased participation from young investors post-Covid. Retail investor accounts grew from 4.9 crore in FY20 to 13.2 crore by December 31, 2024.
Analysis of historical data reveals strong correlation between Nifty 50 and S&P 500. During 22 instances of S&P 500 declining over 10%, Nifty 50 showed negative returns in all but one case, averaging 10.7% decline.
Asian markets showed mixed performance, with Tokyo advancing whilst Seoul declined. European markets traded higher, and US markets closed positively on Thursday.
Foreign Institutional Investors sold equities worth Rs 4,582.95 crore on Thursday.
Brent crude traded at USD 76.64 per barrel, down 0.26%. The stock markets will remain operational on Saturday for the Union Budget presentation.
