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Equity indices resumed their climb on Friday after a day’s pause as bank, energy and FMCG stocks saw robust buying amid persistent foreign fund inflows.
Subdued global markets and a flat rupee capped the gains, analysts said.
After touching its all-time intra-day high of 46,309.63, the 30-share BSE Sensex dipped into the negative zone in late-afternoon trade. However, it staged a comeback to end 139.13 points or 0.30 per cent higher at 46,099.01, just shy of its closing record.
On similar lines, the broader NSE Nifty rose 35.55 points or 0.26 per cent to 13,513.85. It hit a lifetime high of 13,579.35 during the session.
ONGC topped the Sensex gainers’ chart, rallying 5.68 per cent, followed by NTPC, Tata Steel, ITC, ICICI Bank, Titan, Bajaj Auto and SBI.
On the other hand, Axis Bank, M&M, Tech Mahindra, HCL Tech, Bajaj Finserv and Infosys were among the laggards, skidding up to 2.19 per cent.
During the week, the Sensex vaulted 1,019.46 points or 2.26 per cent, while the Nifty surged 255.30 points or 1.92 per cent.
World stocks wobbled as prospects of a no-deal Brexit and uncertainty over US stimulus talks sapped risk appetite.
“Market opened well, but in between it lost all the gains and turned negative, fortunately in the last trading minutes, it made a good attempt to bounce back and closed marginally above. Gains made in sectors like energy, FMCG and metals were countered by selling in Pharma and IT stocks.
“This muted momentum was due to a weak global trend. Despite European Central Bank announcing an increase in the stimulus package, European markets fell as it was weighed by increasing chance of a no-deal Brexit, rising virus cases and moderate usages of the announced stimulus plan. Instability was also seen in the US market with a sudden spike in the volatility index (VIX) and selling in tech stocks,” said Vinod Nair, Head of Research at Geojit Financial Services.
BSE utilities, oil and gas, power, metal, FMCG, realty and capital goods indices rose as much as 2.25 per cent, while healthcare, teck, IT, auto and telecom closed lower.
In the broader markets, the BSE midcap and smallcap indices rose up to 0.51 per cent.
Elsewhere in Asia, bourses in Shanghai and Tokyo were in the red, while Hong Kong and Seoul ended in the positive territory.
Stock exchanges in Europe were trading on a negative note in early deals.
Meanwhile, the global oil benchmark Brent crude futures slipped 0.56 per cent to USD 49.97 per barrel.
The rupee traded in a narrow range and settled for the day 2 paise higher at 73.64 against the US dollar.
Foreign institutional investors remained net buyers in the capital markets, purchasing shares worth Rs 2,259.98 crore on Thursday, according to exchange data
Nifty call:
Strategy: Go long if the contract breaks out of 13,600
Supports: 13,550 and 13,520
Resistances: 13,600 and 13,650
Rupee call:
The rupee has opened today’s session on a flat note at 73.66 and looks sluggish. Thus, it continues to stay within the range 73.50 and 73.70. Until the Indian currency trades within these levels, traders can follow range trading strategy.
Supports: 73.70 and 73.85
Resistances: 73.50 and 73.40
Update:
Equity benchmark Sensex rose over 250 points in early trade on Friday tracking gains in index majors Reliance Industries, HDFC and ICICI Bank amid persistent foreign fund inflows.
After touching its record intra-day high of 46,212.53 in the opening session, the 30-share BSE index was trading 249.43 points or 0.54 per cent higher at 46,209.31.
Similarly, the broader NSE Nifty rose 73.20 points or 0.54 per cent to 13,551.50. It hit a high of 13,553.80.
ONGC was the top gainer in the Sensex pack, rallying around 6 per cent, followed by SBI, NTPC, Bajaj Finance, Tata Steel, Bajaj Finserv, HDFC and Reliance Industries.
On the other hand, Asian Paints, Tech Mahindra, Infosys and Nestle India were among the laggards.
In the previous session, Sensex settled 143.62 points or 0.31 per cent lower at 45,959.88. The broader NSE Nifty fell 50.80 points or 0.38 per cent to 13,478.30.
Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 2,259.98 crore on a net basis on Thursday, according to provisional exchange data.
“Domestic equities look good at the moment. FPIs continue to remain as a key driving force for the markets. Given the dovish tone of global central bankers, improved prospects of sound earnings growth and weak dollar index, we believe FPIs flow should remain benign in subsequent periods,” said Binod Modi Head-Strategy at Reliance Securities.
However, a sharp rise in Brent price and input prices can pose a near-term threat for earnings recovery, he said.
“US equities ended mixed as sharp rise in weekly jobless claim data and slow progress on fiscal stimulus weighed on investors’ sentiments despite satisfactory progress on vaccine approvals and distribution process. However, extension of the asset buying program by EUR 500 billion in European Central Bank (ECB) policy bodes well for global equities especially emerging markets,” he added.
Elsewhere in Asia, bourses in Shanghai and Tokyo were trading in the red in mid-session deals, while Hong Kong and Seoul were in the positive territory.
Meanwhile, the global oil benchmark Brent crude futures were trading 0.04 per cent higher at USD 50.23 per barrel. (PTI)
Opening bell:
The benchmark indices today opened the session on a positive note.
The BSE Sensex opened at 46,204.03, up 244.15 points or 0.53 per cent.
The NSE Nifty was at 13,551.85, up 73.55 points or 0.55 per cent.
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