Sensex jumps 1,718 points to 81,028, Nifty ends at 25,030 on Dhanteras

Markets rallied sharply on Friday, Dhanteras, just ahead of Diwali. The Sensex closed 1,718.01 points, or 2.17 per cent, higher at 81,028.02. The Nifty also ended 493.75 points, or 2.01 per cent, up at 25,030.35.

This was the seventh consecutive session of gains. Over this period, the combined market capitalisation of all companies listed on the Bombay Stock Exchange (BSE) rose by Rs 30 lakh crore, from Rs 473 lakh crore on October 28 to Rs 503 lakh crore.

Private banks led the rally. The Nifty Private Bank index jumped 3.22 per cent, the biggest gainer. It was followed by Nifty Financial Services (2.57 per cent), Nifty Consumer Durables (1.70 per cent), Nifty Services (1.63 per cent), Nifty Consumption (1.29 per cent) and Nifty Pharma (1.21 per cent). Nifty Commodities rose 0.84 per cent, Nifty Infra 0.77 per cent and Nifty Auto 0.76 per cent.

Not everything ended in the green. Nifty Media fell 1.52 per cent, Nifty India Defence 0.92 per cent and Nifty Energy 0.05 per cent. Midcap and smallcap stocks traded mixed. The Nifty Smallcap 100 index slipped 157.40 points, or 0.82 per cent, to 18,975.05, while the Nifty Midcap index closed 14.25 points, or 0.02 per cent, lower at 60,606.65.

Of the 30 Sensex stocks, 29 closed higher. Among the top gainers were M&M, ICICI Bank, HDFC Bank, Titan, Axis Bank, Kotak Mahindra Bank, Tata Steel, NTPC, Adani Ports, Sun Pharma, L&T, UltraTech Cement, Bharti Airtel and Eternal. Only Power Grid closed lower.

Experts said Indian markets held on to their upward run despite declines in markets worldwide. According to them, investors see the domestic market as a safe option at a time of turmoil abroad, which explains the trend.

They also said large private banks benefited the most from the day's rally, with their strong liquidity and attractive valuations making them a natural choice for investment. A week-long fall in crude oil prices, easing US Treasury yields and a stronger rupee have also added to the interest of investors in India, they said.