Mumbai: Positive domestic cues such as value buying, short covering and a firm rupee lifted the Indian equity markets on Friday.
The continued inflow of foreign funds led the key indices to close in the green. The upward trajectory was also supported by healthy buying in automobile, capital goods and metals stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 31.10 points or 0.37 per cent to 8,541.20 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,721.72 points, closed at 27,803.24 points — up 92.72 points or 0.33 per cent from the previous close at 27,710.52 points.
On Thursday, the benchmark indices ended on a lower note on the back of profit booking, global event risks and a logjam in parliament. The barometer index had declined by 205.37 points or 0.74 per cent, while the NSE Nifty edged lower by 55.75 points or 0.65 per cent.
Initially on Friday, the benchmark indices opened on a flat-to-negative note, in sync with their Asian peers, especially the Japanese markets.
Besides, the equity markets were pulled down by lower global crude oil prices, a logjam in parliament and negative European indices.
Sector-specific profit booking on the back of quarterly results also subdued the key indices.
In addition, the European Central Bank (ECB) decision to halt the easing of its monetary policy dampened investors’ sentiments.
However, the consolidation led to value buying which lifted prices during the mid-afternoon trade session.
Moreover, short covering, a firm rupee, hopes on the passage of the GST (Goods and Services) Bill during the ongoing parliament session and healthy progress of the monsoon supported prices.
In the day’s trade, the Indian rupee strengthened by 10 paise to 67.08 against a US dollar from its previous close of 67.17-18 to a greenback.
“A week-long consolidation attracted fresh value buying and short covering. However, the equity markets had opened on a lower note due to negative Asian markets but recovered,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
“Less pessimistic outlook by the ECB in its monetary policy review and some healthy results that came out yesterday after the market hours put a cap on the key indices at lower levels.”
James added that investors will look forward to the next week’s major events such as the US Fed’s FOMC (Federal Open Market Committee) decision as well as vote on the GST Bill.
“There is optimism on the passage of GST bill,” James informed.
Dhruv Desai, Director and Chief Operating Officer of Tradebulls, pointed out that Nifty and Bank Nifty traded with volatile sentiments throughout the session due to profit booking at higher levels.
“Nifty managed to close in the green supported by lower USD/INR futures prices and buying support at lower levels in second half of the session,” Desai noted.
“Most sectors like IT (information technology), banking and pharma traded with mix sentiments due to profit booking.”
Desai elaborated that sugar stocks continued to trade on firm sentiments owing to strong fundamentals like lower supply, while aviation companies’ scrip also witnessed some buying as a result of lower crude oil prices in recent times.
In terms of investments, the provisional data with exchanges showed that the foreign institutional investors (FIIs) bought stocks worth Rs 437.78 crore, while the domestic institutional investors (DIIs) divested scrip worth Rs 365.67 crore.
Sector-wise, all the 19 sub-indices witnessed healthy buying, except the IT index, which slipped by 27.43 points.
On the other hand, the S&P BSE automobile index surged by 160.57 points, followed by the capital goods index, which edged up by 154.82 points, and the metals index rose by 125 points.
Major Sensex gainers during Friday’s trade were: Tata Motors, up 3.21 per cent at Rs 506.40; Power Grid, up 2.52 per cent at Rs 166.85; HDFC, up 1.78 per cent at Rs 1,355.65; Larsen and Toubro (L&T), up 1.14 per cent at Rs 1,573.95; and NTPC, up 1.10 per cent at Rs 156.55.
Major Sensex losers were: Bajaj Auto, down 1.60 per cent at Rs 2,720.75; State Bank of India (SBI), down 0.95 per cent at Rs 223.45; Coal India, down 0.83 per cent at Rs 330.50; Hindustan Unilever (HUL), down 0.80 per cent at Rs 902.90; and Wipro, down 0.78 per cent at Rs 537.45.