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Benchmark indices closed in the green on Friday, led by metals and financials.
Market, which opened on a positive note amid firm global cues, remained volatile during the first half. However, indices extended gains in the second half.
The BSE Sensex closed at 52,925.04, up 226.04 points or 0.43 per cent. It hit an intraday high of 52,973.07 and a low of 52,614.49. The Nifty 50 closed at 15,860.35, up 69.90 points or 0.44 per cent. It hit an intraday high of 15,870.80 and a low of 15,772.30.
Breadth turns positive
The breadth of the market turned positive with 1,789 stocks advancing, 1,418 declining and 138 remaining unchanged on the BSE. As many as 431 securities hit the upper circuit and 295 the lower circuit; 380 hit their 52-week high while 18 touched a 52-week low.
Binod Modi, Head Strategy at Reliance Securities, said, “Benchmark Indices extended gains today mainly led by sharp rebound in Financials and metals. An improved prospect of loan recovery along with better outlook of credit growth led banking stocks to rebound.”
“Notably, barring FMCG, most key sectoral indices traded in green. Benchmark Nifty recovered by nearly 1 per cent this week on favourable global cues triggered mainly by dovish commentary from Fed chairman Powell in his testimony during the beginning of week. This led investors’ wealth to grow by over ₹3 lakh crore this week in the domestic markets,” said Modi.
Tata Steel, Axis Bank, State Bank of India, ICICI Bank and Hindalco were the top gainers on the Nifty 50 while Reliance Industries, Hindustan Unilever, NTPC, Titan and Asian Paints were the top laggards.
Vinod Nair, Head of Research at Geojit Financial Services said, "Domestic equities rose in today’s session mirroring an upbeat mood in the global markets after US President Joe Biden embraced Senate infrastructure deal to help stimulate the economy. The overall mood in Wall Street was lifted since the US jobless claims ticked down as the economy heals. On the domestic front, recovery was seen in banks and metal stocks following its consolidation during the past few days."
According to Ajit Mishra, VP - Research, Religare Broking, Ltd, “The benchmark is hovering near a record high largely led by a gradual pick-up in economic activities, as states start unlocking, the expectation of better earnings and ramp-up of vaccination. On the flip side, the possibility of the third wave of Covid can impact market sentiments.”
Metals, PSU Bank in focus
On the sectoral front, all indices except Nifty FMCG closed in the green. FMCG stocks remained under pressure as metals and financials led the rally.
Nifty Metal was up 2.61 per cent. Nifty Bank was up 1.54 per cent while Nifty Financial Services was up 1.22 per cent. Nifty Private Bank and Nifty PSU Bank were up 1.37 per cent and 2.64 per cent, respectively.
Meanwhile, Nifty FMCG was down 0.65 per cent.
Broader indices
Broader indices also closed in the green.
Nifty Midcap 50 was up 1.70 per cent while Nifty Smallcap 50 was up 0.38 per cent. The S&P BSE Midcap was up 1.03 per cent while the S&P BSE Smallcap was up 0.40 per cent.
The volatility index fell 11.45 per cent to 13.37.
Further, buying was seen in mid-cap and small-cap stocks also, while volatility index corrected over 10 per cent and fell below the 14-point mark, said Modi
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