Sensex hit record high and crossed the 73,700-mark. At close, the Sensex was up 1,245.05 points, or 1.72%, at 73,745.35, and the Nifty was up 356.00 points, or 1.62%, at 22,338.80.
The positive global sentiments can embolden the bulls in India to stage a comeback. Since FIIs are short in the market, short covering is a possibility, V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Market history tells us that sharp up moves in the market happen at unexpected times. It appears that this truism is turning out to be true, he said.
The Fed decision to hold rates and refrain from making hawkish indications has emboldened the bulls to make a strong comeback in the mother market US with S&P rising 1.9 per cent Thursday.
Good earnings numbers and expectations that the interest rate will remain stable for now and will decline in H2 of CY2024 have facilitated market recovery, he said.
Investors should remember that the buy on dips strategy has worked in this market. It is likely to work again. High quality large-caps in financials, automobiles and capital goods are on strong wicket. Mid-cap IT is doing well, he said.
BSE Sensex is up 401 points at 64,482 points. Tata Motors is up more than 2 per cent.