Mumbai: Equity benchmark indices continued their upward momentum on Friday in a broad-based rally led by financial, auto and FMCG stocks and gained the most in nearly two months ahead of exit polls of general elections, despite global headwinds. Markets are pricing in the formation of a stable government and continuation of reforms, experts said.
The 30-share BSE benchmark closed 537.29 points, or 1.44 pc, higher at 37,930.77. Similarly, the broader Nifty rose 150.05 points, or 1.33 pc, to settle at 11,407.15. During the week, the Sensex gained 467.78 points, or 1.24 pc, and the Nifty advanced 128.25 points, or 1.13 pc.
Bajaj Finance was the top gainer in the Sensex pack Friday, surging 6.09 pc, after the company reported a 50 pc jump in net profit for the March quarter. Bajaj Auto too ended higher following strong results. Hero MotoCorp, Maruti, Kotak Bank, HDFC, HUL, M&M, HDFC Bank, ITC, ICICI Bank, Axis Bank, Coal India, SBI, IndusInd Bank and Asian Paints were among the other gainers, rising up to 4.26 pc.
On the other hand, Yes Bank, Vedanta, Infosys, HCL Tech, Sun Pharma, TCS and NTPC shed up to 2.36 pc. Investors lapped up banking and auto stocks, boosting key indices, ahead of the exit poll results scheduled for Sunday. “Indian markets have shown tremendous strength before the long-awaited exit polls, despite the ongoing ambiguity in US-China trade talks.
“With the last phase of elections scheduled for Sunday, the all-round buying across the sectors reflects market’s anticipation that exit polls may indicate the formation of a stable government,” said Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth), Centrum Broking Limited. Sectorally, the BSE auto, FMCG, finance, bankex and capital goods indices ended up to 2.45 pc higher. However, healthcare, IT and teck lost up to 0.99 pc.
