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Domestic stock market indices, Sensex and Nifty, rose over 1.5 per cent on Friday as strong US GDP growth raised expectation of rate cut by the US Federal Reserve in September and on buying by foreign portfolio investors (FPIs). The BSE’s 30-share Sensex gained 1,292.92 points, or 1.62 per cent, to end at 81,332.72. The index broke its five-day losing streak. The broader Nifty 50 rose 428.75 points, or 1.76 per cent to close at record high 24,834.85. “The domestic market experienced a substantial rebound on the start of the next month expiry, recovering from the recent losses incurred following the Union budget . This upturn was driven by positive reactions to the better-than-expected US GDP, which augurs well for global demand,” said Vinod Nair, Head of Research, Geojit Financial Services. The US economy grew at 2.8 per cent in the second quarter, compared to a market estimate of 2 per cent. This has led to an expectation that the US Federal Reserve will cut interest rates in September this year. “Indian markets outperformed its global peers on the back of a strong across-the-board buying support after languishing in negative territory for the past five trading sessions. The sharp rebound signifies that India remains a good long-term bet and the economy continues to show strong resilience in spite of global uncertainty and geo-political tensions,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. Investors are adopting buy on dip strategy, refocusing on quarterly earnings and stock-specific trends, Nair said. Gains were observed across sectors, with metals and IT leading, and midcaps outperforming. The NSE companies that gained the most included Shriram Finance Ltd (9.52 per cent), Cipla (5.76 per cent), Divi’s Laboratories (5.39 per cent), Bharti Airtel (4.32 per cent) and Apollo Hospital (4.14 per cent). On Friday, FPIs bought Rs 2,546.38 crore worth of domestic equity, while domestic institutional investors purchased Rs 2,774.31 crore, the BSE’s provisional data showed. None
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