Sensex, Nifty Ended At 52-Week Highs As Global Equities Rally
Both indices are also a whisker away from their record closing highs.
Indian benchmarks S&P BSE Sensex and NSE Nifty 50 hit their respective 52-week highs, joining a global rally in equities.
Globally, appetite for riskier assets improved after the slower-than-projected U.S. CPI numbers raised hopes that the Fed may slow its aggressive rate hikes.
The broader Sensex jumped 2% to 61,820.47, a fresh 52-week high, while the Nifty jumped over 320 points to 18,357.7.
At the close, Nifty 50 was 1.78% higher at 18,349.7 on Friday and the Sensex was at 1.95% at 61,795.04
The benchmarks have tracked gains in Asian stocks that rallied after the S&P 500 climbed 5.5%, reacting to inflation data.
Indian markets have rebounded considerably, after foreign investors pulled out record sums from the country's stocks this year, as global central banks increased rates to contain inflation. The rally in Indian stocks is remarkable considering foreign investors have withdrawn investments worth Rs 1,68,797 crore in the first 10 months of the year.
FPIs were net investors in July and August, only to turn net sellers again in September and October. So far in November, they have net bought Rs 800.41 crore worth of equities in the first 10 days.
Indian markets, in sync with the rupee, have also outperformed emerging market peers in the past year. The MSCI Emerging Markets Index has fallen just over 25% year-to-date, while MSCI All Country World Index, a gauge including stocks from 23 developed and 24 emerging markets, has declined around 19%.
During the same period, Sensex and Nifty have gained 4.06% and 3.83%, respectively. Among Nifty 50 stocks, Adani Enterprises Ltd. was the top gainer, surging 140%.
The rally was largely fuelled by gains in auto, financials and energy stocks in the last 52 weeks. The NSE Nifty Auto Index has returned around 12% in the last year, with Tube Investments Ltd. and Maruti Suzuki India Ltd. being the top gainers, while Hero Motocorp Ltd. and Bajaj Auto Ltd. remained largely flat.
Nifty Bank has advanced as much as 9.68%, with Bank of Baroda Ltd. gaining the most by over 60%, and Nifty Energy, with a 12.26% surge, has also outperformed the benchmark. Adani Group stocks -- Adani Green Energy Ltd. and Adani Transmission Ltd. both soared over 70% in the last 52 weeks.