Shares were set on Friday for their best year since 2017, driven by an economic recovery driven by the pandemic-fueled slowdown and massive liquidity, even as a raging new COVID-19 version and Valuation concerns kept investors cautious until the end of the year.
As of 12:26 pm, the NSE Nifty 50 index was up 0.95 per cent or 163.95 points at 17,367 and the benchmark S&P BSE Sensex rose 490.12 points by 0.85 per cent at 58,284.44. The NSE and BSE indices were up 24 per cent and 21 per cent respectively for the year.
“The market has embraced the possibility of a rate hike, and with the new version, there is a general feeling that we may not get into the panic situation like last year, although we may see a short period of pain,” Chief Anand James said. Market Strategist at Geojit Financial Services.
“Going forward, investors can change their position before the budget session and earn from IT companies. In anticipation of these two events, people are not giving up their winnings outright and this is allowing the markets to profit. Because we wrap up the year.”
Indian equities hit a record high in October before retreating over seven per cent on higher valuations and concerns over the spread of the Omicron variant of COVID-19 across the world.
Indian authorities on Thursday began enforcing tougher rules preventing New Year parties and mass gatherings in public places to combat a spike in COVID-19 infections.
The year also saw several early share sales, including India’s largest digital payments start-up Paytm, as ample liquidity and strong retail participation pushed the stock market to record highs.
Some of the prominent names listed this year include beauty e-commerce retailer Nykaa and food delivery platform Zomato.
On Friday, the Nifty Bank and Metal indices rose 1.2 per cent and 1.9 per cent, respectively.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)