Markets bounce back on heavy value buying
Despite global weakness, Indian bourses snap 4-day slump driven by large-cap stocks
image for illustrative purpose
Mumbai: Stock markets rebounded from early lows to close higher on Friday, snapping the four-day losing streak on heavy value buying in banking and auto shares. The 30-share BSE Sensex climbed 599.34 points or 0.83 per cent to settle at 73,088.33. The index opened lower and tanked further 672.53 points or 0.92 per cent to hit a low of 71,816.46 in early trade. However, the index rebounded in the second half on value-buying in banking shares. The NSE Nifty jumped 151.15 points or 0.69 per cent to close at 22,147. The broader index dropped to a low of 21,777.65 in early trade before paring its losses to end in the green.
From the Sensex basket, Bajaj Finance, Mahindra & Mahindra, HDFC Bank, JSW Steel, Maruti, Wipro, Bharti Airtel, Bajaj Finserv, ICICI Bank and ITC were the major gainers. Nestle India, HCL Technologies, Larsen & Toubro, Tata Consultancy Services, Tata Motors and Infosys were among the laggards. Infosys declined nearly 1 per cent after the company’s revenue growth guidance for FY25 failed to meet market expectations.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong settled in the negative territory. European markets were trading in the red. Wall Street ended mostly lower on Thursday. Global oil benchmark Brent crude climbed 0.55 per cent to $87.62 a barrel. Foreign institutional investors (FIIs) offloaded equities worth Rs 4,260.33 crore on Thursday, according to exchange data.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Despite global weakness, Indian markets staged a strong recovery driven by large-cap stocks, buoyed by the expectation of limited prospects of escalation following Israel’s action against Iran. However, fragility persists with elevated oil prices, posing inflation risks.” Deepak Jasani, Head of Retail Research, HDFC Securities, said: “Nifty reversed a four-day losing streak to end higher.”
In the broader market, the BSE midcap gauge declined 0.39 per cent and smallcap index dipped 0.04 per cent.
Among the indices, bankex jumped 1.02 per cent and metal climbed 0.85 per cent. Financial services (0.83 per cent), consumer durables (0.78 per cent) and commodities (0.54 per cent) also gained.
IT, telecommunication, utilities, realty and teck were among the laggards. On the weekly front, the BSE benchmark declined 1,156.57 points or 1.55 per cent and the Nifty dipped 372.4 points or 1.65 per cent. Meanwhile, the 2024 Lok Sabha polls kicked off on Friday with the beginning of polling for the first phase. The BSE benchmark tanked 454.69 points or 0.62 per cent to settle at 72,488.99 on Thursday. The NSE Nifty declined 152.05 points or 0.69 per cent to 21,995.85.
