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The markets ended the week on a positive note as the pullback rally continued, with benchmark indices closing nearly 1 per cent higher on Friday.
The market started off on a positive note amid firm global cues. The indices extended their gains through the day amid broad-based buying.
The BSE Sensex closed at 52,727.98, up 462.26 points or 0.88 per cent. It recorded an intraday high of 52,909.87 and a low of 52,447.25. The Nifty 50 closed at 15,699.25, up 142.60 points or 0.92 per cent. It recorded an intraday high of 15,749.25 and a low of 15,619.45.
Breadth remains positive
The market breadth remained positive, with 2,401 stocks advancing on the BSE, as against 906 that declined, while 141 remained unchanged. Further, 19 stocks hit the upper circuit as compared to eight stocks that were locked in the lower circuit. Besides, 60 stocks touched a 52-week high and 53 touched a 52-week low.
Prashanth Tapse, Vice-President (Research), Mehta Equities Ltd said, “Risk appetite seems to have returned to the market as Nifty joined the conga-line of rising global stock markets.”
According to Tapse, the bulls maintained a firm footing in today’s trade.
“The market can move up for some time, but we suspect — exhaustion will occur, and when that happens, we will see a major correction.
The markets are witnessing consolidation after the sharp decline, and awaiting some fresh triggers,” added Tapse.
According to analysts, with a lack of domestic events to drive the market, investors are likely to focus on global updates, including market performance, crude movement and updates on the geopolitical situation.
Amol Athawale, Deputy Vice-President - Technical Research, Kotak Securities Ltd said, “Benchmark Sensex & Nifty joined the global rally and logged impressive gains following the recent rout, as falling commodity prices and a steady fall in crude prices bolstered sentiment.”
“Also, valuations have become attractive after the recent sell-off, which has prompted investors to buy beaten-down stocks of metal, oil & gas, banking and power,” Athawale added.
M&M, Hero Motocorp, IndusInd Bank, Bajaj Finance and Hindustan Unilever were the top gainers on the Nifty 50, while Tech Mahindra, Infosys, Apollo Hospitals, NTPC and TCS were the top laggards.
IT under pressure
In terms of the sectoral indices, all indices, except Nifty IT, closed in the green.
Nifty IT was down 0.89 per cent at closing.
Meanwhile, Nifty PSU Bank, Nifty Private Bank, Nifty Metal and Nifty Auto, each closed nearly 2 per cent higher. Nifty Consumer Durables was up 1.56 per cent, while Nifty Bank was up nearly 1.5 per cent. Nifty Financial Services, Nifty FMCG and Nifty Oil & Gas closed over 1 per cent higher.
Broader indices
The broader indices also closed higher.
Nifty Midcap 50 was up 1.41 per cent, while Nifty Smallcap 50 was up 1.95 per cent. The S&P BSE Midcap was up 1.53 per cent, while the S&P BSE Smallcap was up 1.60 per cent.
The volatility index softened 1.58 per cent to 20.55.
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