The equities ended the week on a positive note with benchmark indices closing nearly 3 per cent higher on Friday.

The market rebounded from the previous session’s losses, edging higher in the early trade, tracking positive cues from the Asian markets. Indices extended gains and closed higher, witnessing across the board buying and gains in heavyweights such as Reliance.

The BSE Sensex closed at 54,326.39, up 1534.16 points or 2.91 per cent. It recorded an intraday high of 54,396.43 and a low of 53,403.29. The Nifty 50 closed at 16,266.15, up 456.75 points or 2.89 per cent, near the day’s high of 16,283.05. It recorded an intraday low of 16,003.85.

Breadth turns positive

The market breadth turned positive with 2,497 stocks advancing on the BSE against 777 that declined while 144 remained unchanged. Furthermore, 19 stocks hit the upper circuit compared to the five stocks that were locked in the lower circuit. Besides, 65 stocks touched a 52-week high level and 36 touched a 52-week low.

Arafat Saiyed, Senior Research Analyst at Reliance Securities, said, “Domestic equities rebounded and ended in green, taking positive cues from Asian markets, after registering its worst single-day decline in over two months. China cut its 5-year loan prime rate (LPR) by 15bps to ameliorate the economic slowdown, which bolstered investor sentiments.””

“Moreover, Finance Minister, Nirmala Sitharaman suggested that India’s economic growth is likely to be robust at 8.9 per cent in FY23. While the earnings season is about to wind-up in a couple of weeks, markets are likely to remain highly volatile amid the prolonged Russia-Ukraine crisis and surging Covid cases in China. The rupee hitting an all-time low, Fed’s tightening policy and continuous FPI sale, are likely to have economic difficulties in the near-term,” he added.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, “After witnessing a sharp decline over the past two weeks, the equity markets ended this week on a positive note. However, following global cues, the India equity markets witnessed a large volatility.”

“Overall market breadth was positive, with gains witnessed across mid-cap, small-cap and most sectoral key indices. Metal sector rebounded sharply post steep correction in recent weeks. FII’s continued with their selling in India. Markets remained wary of global growth-inflation expectations. With result-season coming towards the last leg, the focus will be more on the macro data points. Monetary policy tightening action by Central Banks globally amid high inflation will continue to weigh on market sentiments,” said Chouhan.

Dr Reddy’s, Reliance, Adani Ports, JSW Steel and Tata Motors were the top gainers on the Nifty 50. Only two stocks- Shree Cement and UPL closed in the red. 

All in green

All sectoral indices closed in the green with pharma, metals and realty recording higher gains. Nifty Metal and Nifty Realty closed over 4 per cent higher each. Nifty Pharma and Nifty Healthcare Index were each up nearly 4 per cent while Nifty PSU Bank closed over 3 per cent higher. Nifty Bank, Nifty Private Bank, Nifty Financial Services, Nifty Auto and Nifty Oil & Gas each closed nearly 3 per cent higher. 

Broader market rebounds 

The broader market also rebounded with broader indices closing in the green. The Nifty Midcap 50 and Nifty Smallcap 50 were each up 2.27 per cent at closing. The S&P BSE Midcap was up 1.98 per cent while the S&P BSE Smallcap was up 2.13 per cent.

The volatility index softened 5.93 per cent to 23.10.

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