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Benchmark indices were trading over 1 per cent higher during the afternoon on Friday. Markets rebounded with a positive start at opening, tracking gains in Asian markets. Market extended gains in the first half, witnessing across the board buying.
At 1 pm, the BSE Sensex was trading 722.22 points or 1.36 per cent higher at 53,652.53, near the day’s high of 53,695.91. It recorded an intraday low of 53,131.69. The Nifty 50 as trading near the day’s high of 16,056.55, at 16,042.75, up 234.75 points or 1.49 per cent. It recorded an intraday low of 15,886.60.
Tata Motors, Titan, Mahinda & Mahindra, Sun Pharma and Hero Motocorp were the top gainers on the Nifty 50 while NTPC, Hindalco, JSW Steel, Wipro and ICICI Bank were the top laggards. Investors remain cautious owing to rising inflation and concerns regarding further monetary tightening.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “This is the season of headwinds for markets. High inflation in the US and the hawkish Fed has pushed up bond yields, negatively impacting equity markets. In this backdrop, FPIs continue their selling spree further impacting sentiments.” Further, India’s CPI inflation for April rose to an eight-year high level of 7.79.
According to Vijayakumar, this leaves “no option for RBI, but to turn hawkish in the coming policy meets”. The positive side is that all this bad news is already known and factored in by the market. Since the market is oversold, a bounce-back can be expected but the texture of the market remains weak, Vijayakumar added.
All sectoral indices in green
All sectoral indices were trading in the green with auto stocks recording highest gains. Nifty Auto was up nearly 4 per cent. NIfty FMCG and Nifty PSU Bank were up nearly 3 per cent each. Nifty Oil & Gas was up 2.58 per cent.
Nifty Consumer Durables and Nifty Pharma were up over 2 per cent each. Nifty Realty and Nifty Healthcare Index were trading nearly 2 per cent higher each.
Broader market rebounds
Broader market also rebounded with broader indices trading higher. The Nifty Midcap 50 was up 2.47 per cent while Nifty Smallcap 50 was up 3.02 per cent. The S&P BSE Midcap was up 2.38 per cent while the S&P BSE Smallcap was up 2.53 per cent. The volatility index softened 5.11 per cent to 23.03.
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