Benchmark stock market indexes rose on Friday after plunging for many sessions, as investors hurried to purchase the dip to take advantage of the low prices. The S&P BSE Sensex was up 527.21 points at 80,567.01 at 10:13 a.m., while the NSE Nifty50 gained 186 points to 24,592.10.
As volatility fell, all of the other broad market indicators rose as well. Small- and mid-cap stocks rose more than 1% in early trade, strengthening overall confidence on Dalal Street.
Information technology companies contributed considerably to the rise, with the Nifty IT surging about 1.8%.Nifty Metal climbed 2.20%, while Nifty Realty and Nifty Pharma also saw significant increases.
The top five Nifty50 gainers were Infosys, LTIM, Shriram Finance, Bharti Airtel, and Eicher Motors. On the other hand, the biggest losers were Tech Mahindra, HDFC Bank, ONGC, Nestle India, and Tata Motors.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, "The ongoing bull market in India is unique in its ability to climb all walls of worry." The market rejected all concerns about elections, the budget, and the correction in the mother market, the United States."
"The purchase on dips technique, which has proven effective in this rise, remains valid. However, the valuation disparity - large-caps moderately valued vs mid and small-caps highly valued - persists," he noted.
"Long-term investors should take advantage of this disparity by purchasing excellent large-cap stocks on dips. FPIs have again turned sellers, which may put more pressure on large-caps, even though FPI selling is being offset by DII purchasing," Vijayakumar noted.
