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Equity benchmarks ended at a two-month high on Friday with Sensex and Nifty reclaiming the 61,000 and 18,000 levels, respectively, in the backdrop of upbeat performance by large corporates and banks, declining oil prices and other global cues including better earnings from big tech companies.
At close, the Sensex was up 463.06 points, or 0.76 per cent, at 61,112.44 and the Nifty gained 150 points, or 0.84 per cent, at 18,065.
Taking stock
“The Indian market saw a reversal in trend compared to the previous week, with strong earnings reported by heavyweights, especially banks, boosting sentiment. Meanwhile, oil prices declined due to concerns over the global economic slowdown, which outweighed the prospect of tighter supplies by OPEC+. As India is a large importer of crude, the correction had a positive impact on the market,” said Vinod Nair, Head of Research at Geojit Financial Services.
All the sectoral indices ended in green except Nifty Consumer Durables (down 0.3 per cent). Nifty PSU Bank was the biggest gainer, up 2.5 per cent, followed by Nifty Media and Nifty IT which ended 1.8 per cent and 1.3 per cent higher, respectively.
Amol Athawale, Technical Analyst (DVP), Kotak Securities Ltd, said: “Strong overnight positive cues from the US markets bolstered the sentiment as investors’ growing appetite for local shares helped benchmark indices close above the psychological marks in a slightly volatile market. While the markets may have run up sharply over the past few sessions due to revival in the FII buying interest, relatively better corporate earnings performance so far, and falling crude oil prices, caution may prevail going ahead and profit-taking could come into play.”
What to watch for
“The markets are in the thick of the earnings season both in India and globally. Sample of 70 companies to have reported their Q4 FY23 results so far shows revenue growth of 9.7 per cent y-o-y and PAT growth of 12.7 per cent y-o-y. Investors will closely analyse the quarterly numbers and the management commentary on the demand scenario in the economy,” said Mitul Shah, Head of Research at Reliance Securities.
All eyes will now be on the Fed Reserve which is likely to hike interest rates by 25 bps in its meeting scheduled next week.
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