Equity benchmark Sensex climbed over 460 points to reclaim the 61,000 mark while the Nifty closed above the 18k level on Friday, propelled by robust buying in index majors Reliance Industries and ITC amid fresh foreign fund inflows. Rallying for the fifth straight session, the 30-share BSE Sensex jumped 463.06 points or 0.76 per cent to settle at 61,112.44. During the day, it surged 560.08 points or 0.92 per cent to 61,209.46.
The broader NSE Nifty advanced 149.95 points or 0.84 per cent to finish at 18,065, with 40 of its scrips ending in the green.
”Despite concerns about potentially weaker US GDP numbers and high inflation, the stronger-than-expected earnings reported by Meta propelled IT stocks to the forefront of the Wall Street rally. ”The trend was reflected in the domestic market, as beaten-down IT stocks helped to lift broader market sentiment. However, with US inflation remaining high, the prospect of another rate hike by the Fed is looming, keeping global markets volatile in the coming days,” said Vinod Nair, Head of Research at Geojit Financial Services.
Wipro was the biggest gainer in the Sensex pack, rising 2.89 per cent, followed by Nestle, State Bank of India, Larsen & Toubro, ITC, Tech Mahindra, Reliance Industries, Kotak Mahindra Bank and Bajaj Finance.
Sensex, Nifty rally around 1 pc on strong macro data, global cues; metal, power shares lead gains
In contrast, Axis Bank, HCL Technologies, Titan, Hindustan Unilever, Bajaj Finserv and ICICI Bank were the major laggards, skidding up to 2.39 per cent.
IT major Wipro on Thursday reported a marginal year-on-year decline of 0.4 per cent in net profit to Rs 3,074.5 crore for the fourth quarter ended March 2023 and announced a share buyback of up to Rs 12,000 crore.
”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 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,” Amol Athawale, Technical Analyst (DVP), Kotak Securities Ltd, said.
In the broader market, the BSE midcap gauge climbed 1.32 per cent and smallcap index advanced 0.91 per cent.
Among indices, telecommunication jumped 2.44 per cent, capital goods (1.74 per cent), industrials (1.54 per cent), commodities (1.29 per cent), utilities (1.32 per cent), power (1.27 per cent), teck (1.10 per cent) and IT (1.04 per cent).
The consumer Durables index emerged as the only laggard.
”Global equity markets remained volatile amid worries about a slowdown in global growth. Domestic equity markets showed strength and ended the week positively. Sensex 30 and Nifty 50 moved higher by 2 per cent this week.
”Overall breadth of the market was positive with BSE Midcap, BSE Smallcap and most of the sectoral indices closing the week with positive returns. The BSE Realty Index continued with strong gains this week as well. BSE IT index regained some lost ground, post witnessing pressure in the previous week,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said.
In Asian markets, Seoul, Japan, Shanghai and Hong Kong ended in the green.
”Asian stocks rose on Friday as strong corporate earnings lifted sentiments and the Bank of Japan kept rates ultra-low even as it announced a broad review of monetary policy and modified its forward guidance by removing a pledge to keep interest rates at current or lower levels,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.
Equity markets in Europe were trading lower. The US markets ended with significant gains on Thursday.
”European stocks edged lower on Friday after Eurozone GDP data for the first quarter missed expectations while inflation data stirred concerns that eurozone interest rates would have to increase further to stave off price rises,” Jasani said.
The BSE benchmark surged 348.80 points or 0.58 per cent to settle at 60,649.38 on Thursday. The Nifty gained 101.45 points or 0.57 per cent to end at 17,915.05.
Meanwhile, global oil benchmark Brent crude climbed 0.45 per cent to USD 78.72 per barrel.
Crude oil prices corrected this week, with Brent Crude trading below the USD 80 per barrel mark. Markets in the near term will focus on the upcoming Federal Reserve meeting and the ongoing Q4FY23 financial results, Chouhan said.
Foreign Institutional Investors (FIIs) were buyers on Thursday as they bought equities worth Rs 1,652.95 crore, according to exchange data. ”Overall, the positive outlook remains intact and a close above 18100 shall lead to a further upside till 18370 where resistance in the form of the weekly upper Bollinger band is placed, Jatin Gedia,” Technical Research Analyst, Sharekhan by BNP Paribas, said.