Bourses settle 1% higher; Sensex climbs over 480 pts, Nifty ends above 19,500
Mumbai: Equity benchmark indices Sensex and Nifty snapped their three-session losing streak to close nearly 1 per cent higher on Friday, buoyed by gains in HDFC Bank, Reliance Industries and Infosys amid a largely firm trend in global markets.
After three days of decline, the 30-share BSE Sensex climbed 480.57 points or 0.74 per cent to settle at 65,721.25. During the day, it jumped 558.59 points or 0.85 per cent to 65,799.27.
The NSE Nifty advanced 135.35 points or 0.70 per cent to end at 19,517.
On a weekly basis, the BSE benchmark fell by 438.95 points or 0.66 per cent, and the Nifty dipped 129.05 points or 0.65 per cent.
“Markets witnessed respite after the recent fall and gained over half a per cent. After the gap-up start, Nifty hovered in a band throughout the session and finally settled at 19,517 levels.
“Meanwhile, a mixed trend on the sectoral front kept traders busy, wherein IT, pharma and banking posted decent gains. The broader indices
too participated in the move and gained nearly a per cent each,” said Ajit Mishra, SVP - Technical Research, Religare Broking Ltd.
IndusInd Bank was the biggest gainer in the Sensex pack, rising 3.25 per cent, followed by Tech Mahindra, Wipro, Bharti Airtel, HCL Technologies, Axis Bank, HDFC Bank, RIL, TCS, L&T and Infosys.
In contrast, State Bank of India, NTPC, Maruti, Bajaj Finserv, Tata Motors and Power Grid were among the laggards, slipping up to 2.94 per cent.
“The market had been falling for three consecutive sessions, and a relief rally was already expected, which came in on the back of a rating upgrade by Morgan Stanley as India remains a bright spot in an otherwise tepid world economy.
“Fitch Ratings’ move to downgrade US government credit had triggered a global market sell-off in the last few sessions, but India’s buoyant economic show in the last few quarters means investors cannot ignore domestic equity markets for long and would keep coming after every short-term correction,” Amol Athawale, Vice President - Technical Research, Kotak Securities Ltd, said.
In the broader market, the BSE smallcap gauge climbed 0.66 per cent, and the midcap index advanced 0.65 per cent.
Among the indices, IT rallied 1.47 per cent, telecommunication jumped 1.45 per cent, tech (1.39 per cent), financial services (0.83 per cent), capital goods (0.66 per cent) and bankex (0.66 per cent).
Utilities, auto, oil & gas and power were the laggards.
The rupee fell by 7 paise to settle at 82.81 a more than two-month low against the US dollar on Friday weighed down by safe-haven dollar demand and higher crude oil prices.
India’s services sector growth touched a 13-year high in July as a substantial improvement in demand conditions and a pick-up in international sales induced the strongest increase in new business and output, according to S&P Global India Services PMI Business Activity Index.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 317.46 crore on Thursday, according to exchange data. Global oil benchmark Brent crude climbed 0.62 per cent to $85.67 a barrel.
