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Benchmark indices closed in the green on Friday, recovering from early losses after slipping for five consecutive days. After a gap down opening owing to weak global cues, the market recovered from early losses during the afternoon trade and surged further in the second half. FMCGs and metal stocks helped in the revival of fortune.
Binod Modi, Head Strategy at Reliance Securities, said, “Despite weak global cues, domestic equities recovered sharply today after five days of back-to-back fall. In our view, a sharp correction in oil price and moderate contraction in bond yields offered support to domestic equities despite the prevailing concern of rise in daily Covid-19 cases.”
The BSE Sensex, which crossed the psychological 50,000-mark in the late hour, closed at 49,858.24, up 641.72 or 1.30 per cent. It hit an intraday high of 50,003.58 after slumping to a low of 48,586.93 in the opening session. The strong rally helped Nifty 50 close above 14,700-mark at 14,737.05, up 179.20 or 1.23 per cent. It hit an intraday high of 14,788.25 and a low of 14,350.10.
On the BSE, as many as 1,474 shares have advanced, 1,456 declined, and 205 remain unchanged. As many as 136 scrips hit their 52-week high while 61 touched a 52-week low.
Hindustan Unilever, NTPC, JSWL Steel, UPL and Tata Steel were top gainers on the Nifty 50. While Tech Mahindra, Larsen & Toubro, Bajaj Auto, Coal India and Titan were among the losers.
Vinod Nair, Head of Research at Geojit Financial Services, said, "The highly volatile domestic markets witnessed a smart recovery from its morning weakness and was swinging between gains and losses during the day owing to strong buying seen in FMCG, pharma and energy stocks. However, auto stocks were under pressure after the announcement of the government's new scrapping policy. The unsettling pace of US bond yields and a surge in Covid cases worldwide resulted in the global markets trading deep in red."
FMCG, metal stocks steal the show
Among the sectoral indices, all except Nifty Realty were able to recover. Nifty Realty was down 0.53 per cent at closing.
FMCG and metal stocks stole the show today. FMCG managed to retain gains throughout the day in an otherwise volatile market. Nifty FMCG was up 2.43 per cent, while Nifty Metal gained 2.08 per cent. Nifty Pharma also recovered from early losses to close 1.33 per cent higher.
Auto stocks, which failed to cheer the Vehicle Scrappage Policy that was announced by the Road Transport and Highways Minister Nitin Gadkari in Parliament on Thursday, recovered in the second half to record marginal gains. The Nifty Auto was up 0.42 per cent at closing.
Broader indices catch up
Broader indices also recovered after underperforming in the first half. All broader indices closed in the green. The Nifty Midcap 50 was up 1.54 per cent, while Nifty Smallcap 50 was up 0.70 per cent. The S&P BSE Midcap was up 1.35 at closing while BSE Smallcap gained 0.41 per cent.
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