Sensex settles 119 points higher on back of strong global cues, robust GDP figures

Mumbai: The domestic equity market reacted positively and made gains on the back of strong global market cues on Friday. With the robust gross domestic product (GDP) numbers and the approval of the bipartisan debt ceiling legislation by the US Senate, it brought back the confidence of investors on Friday.

The US Senate late on Thursday night approved a bill to increase the government's borrowing limit, and had sent it to President Joe Biden's desk. BSE 30-share Sensex went up 119 points and settled at 62,547.11 and NSE Nifty 50 surged 46 points and ended at 18,534.10 on Friday.

In the Asian markets, Hong Kong's Hang Seng surged 733 points, Japan's Nikkei gained 376 points, China's Shanghai rose 25 points and Thailand Set gained 9 points on Friday.
In the US markets, Nasdaq, NYSE and S-P/BMV were trading in the positive territory, Dow Jones gained 153 points and S-P 500 surged 41 points.

In the European market, Amsterdam Exchange gained 5 points, Deutsche Borse surged 169 points, CAC rose 83 points and BEL went up 52 points, FTSE 100 was up 68 points, FTSE 250 gained 216 points when the domestic markets closed on Friday.

According to NSE data, domestic institutional investors (DIIs) turned net buyers, with Rs 488.93 crore on Thursday closing while foreign institutional investors (FIIs) were net sellers, with Rs 71.07 crore.

Joseph Thomas, Head of Research, Emkay Wealth Management, said, "The equity market has been holding quite well buoyed by the better-than-expected national income data, encouraging manufacturing PMI (Purchasing Managers' Index), and finally, a closure to the US debt ceiling discussions."

He said the positive sentiment created by these events may linger on for some more time. "However, in the immediate term one should be cognizant of the high probability for exports to slowdown with almost all auto companies reporting a decline in the exports component, and a slowdown in foreign portfolio investment (FPI) flows if the strength in the US unit endures," Joseph Thomas added.