Equity market benchmark indices closed over 1 per cent higher on Friday, tracking positive global cues. After opening on a positive note, the stock market maintained the bullish momentum. Indices extended gains through the day amid broad-based buying with IT stocks leading the rally. 

The BSE Sensex closed at 54,884.66, up 632.13 points or 1.17 per cent. It recorded an intraday high of 54,936.63 and a low of 54,449.34. The Nifty 50 closed at 16,352.45, up 182.30 points or 1.13 per cent. It recorded an intraday high of 16,370.60 and a low of 16,221.95.

Breadth remains positive

The market breadth remained positive with 2,215 stocks advancing on the BSE as against 1,109 that declined, while 124 remained unchanged. 17 stocks hit the upper circuit as compared to only one stock locked in the lower circuit. Besides, 53 stocks touched their 52-week high levels and 61 touched 52-week lows.

Apollo Hospitals, Tech Mahindra, HDFC Life, IndusInd Bank and Wipro were the top gainers on the Nifty 50, while ONGC, NTPC, Powergrid, Bharti Airtel and Tata Steel were the top losers.

The volatility Index softened 5.44 per cent to 21.48.

Deepak Jasani, Head of Retail Research, HDFC Securities said, “Nifty built on gains of the previous session on May 27. It opened with an upgap and continued to rise to close almost at the intra day high. Volumes on the NSE were lower than recent average. Advance decline ratio sharply improved. US Secretary of State Antony Blinken’s comment that the US will not block China from growing its economy, but wants it to adhere to international rules was taken positively by the markets.”

“Sentiments seem to have turned for the better over the past two days. A move above 16414 could take the Nifty swiftly to 16624 and later 16825. However 16006 support needs to be protected,” Jasani said.

Vinod Nair, Head of Research at Geojit Financial Services said, “Joining the global rally, the investors were in a buying mood following favourable retail earnings in the US. Receding FII selling also provided comfort to the domestic market in bringing down volatility. The RBI’s upcoming policy meeting will be a key factor in the market, where they are expected to announce an additional policy rate hike of 25-35bps.”

Investor sentiments were supported by the RBI’s annual report which suggested that Indian economy is likely to bounce back despite global headwinds. 

“Despite these risks, the recovery is getting entrenched and is broadening,” the RBI report said.

Sectoral indices

On the sectoral front, all indices except Nifty Metal and Nifty Oil & Gas closed in green. IT, financials, auto and healthcare recorded higher gains.

Nifty Oil & Gas was down 1 per cent at closing.

According to Jasani, “Shares of oil producers like ONGC, Oil India, Reliance Industries fell on reports that suggest government is considering a windfall tax on oil and gas producers to offset ballooning public expenditure on fuel, food and fertiliser subsidies amid surge in inflation.”

Meanwhile, Nifty IT was up 2.5 per cent. Nifty Private Bank was up nearly 2 per cent. Nifty Auto was up 1.56 per cent, while Nifty Financial Services closed 1.51 per cent higher. Nifty Bank, Nifty FMCG and Nifty Healthcare Index were each up over 1 per cent. 

Broader indices

Broader indices outperformed the benchmarks. Nifty Midcap 50 was up 1.41 per cent, while Nifty Smallcap 50 was up 1.98 per cent. The S&P BSE Midcap was up 1.69 per cent, while the S&P BSE Smallcap was up 1.20 per cent.

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