Equity benchmark indices Sensex and Nifty found firmer ground on Friday after a three-session losing streak, propped up by buying in IT, tech and banking counters amid a positive trend overseas and unabated foreign fund inflows.
The 30-share BSE Sensex climbed 297.94 points or 0.48 per cent to settle at 61,729.68 helped by fag-end buying. During the day, the benchmark faced volatile trends, hitting a high of 61,784.61 and a low of 61,251.70.
The NSE Nifty advanced 73.45 points or 0.41 per cent to end at 18,203.40.
On a weekly basis, the BSE Sensex declined 298.22 points or 0.48 per cent. The Nifty dipped 111.4 points or 0.60 per cent.
"Positive global cues helped markets reverse its three-day losing streak, as buying in IT, select banking and realty stocks aided recovery. If the global situation over interest rate movement and demand scenario doesn't improve, we may see bouts of profit-taking in the near term," said Amol Athawale, Technical Analyst (DVP), Kotak Securities Ltd.
Tata Motors was the biggest gainer in the Sensex pack, rising over 3 per cent, followed by Tech Mahindra, Infosys, HCL Technologies, Axis Bank, Mahindra & Mahindra, ICICI Bank, UltraTech Cement and Kotak Mahindra Bank.
On the other hand, NTPC, Asian Paints, Titan and Power Grid were among the laggards.
Punjab National Bank on Friday reported over five-fold jump in its net profit to Rs 1,159 crore for the March 2023 quarter, helped by lower bad loans and a rise in interest income. Its shares surged 1.61 per cent to close at Rs 49.26 apiece on BSE.
"The markets trended lower during the week gone by, as the IT sector witnessed a drag owing to a weak set of numbers being declared by one of the majors. The concerns regarding global economic outlook too impacted the sentiments; a strong growth reported by China failed to meaningfully influence the bulls. Over the near term the markets may be expected to be volatile, led by very stock-specific movements as the earnings season goes underway in full swing," said Joseph Thomas, Head of Research, Emkay Wealth Management.
In the broader market, the BSE smallcap gauge dipped 0.16 per cent, and the midcap index ended flat marginally lower by 0.01 per cent.
Among the indices, IT jumped 1.40 per cent, teck climbed 1.24 per cent, services (0.84 per cent), realty (0.79 per cent), bankex (0.56 per cent) and utilities (0.52 per cent).
Industrials, capital goods and oil & gas were the laggards.
"Global shares hit a one-month high on Friday as markets reflected increased hopes of a US debt ceiling deal that could avoid a potentially calamitous default and investors shrugged off hawkish rhetoric from Fed speakers," Deepak Jasani, Head of Retail Research, HDFC Securities, said.
In Asia, Seoul and Tokyo markets ended in the green, while Shanghai and Hong Kong settled lower.
European markets were trading with gains. The US market ended on a positive note on Thursday.
"The domestic market, though experienced a lack of decisive direction, closed the day on a positive note. The optimism in the US market was fuelled by progress in debt ceiling talks. However, the prospect of a stronger US economy suggests that the Federal Reserve may keep policy rates elevated for an extended duration," said Vinod Nair, Head of Research at Geojit Financial Services.
Foreign Institutional Investors (FIIs) continued their buying activity as they bought equities worth Rs 970.18 crore on Thursday, according to exchange data.
An expert committee appointed by the Supreme Court said it cannot conclude any regulatory failure around Adani Group's stock rallies, and that Sebi has "drawn a blank" in its probe into alleged violations in money flows from offshore entities into the conglomerate.
But the six-member panel said there was evidence of a build-up in short positions on Adani Group stocks ahead of the report of US-based short seller Hindenburg Research, and profiting from squaring off positions after prices crashed post-publication of the damning allegations.
All the ten listed companies of the Adani Group ended higher on Friday.
Meanwhile, global oil benchmark Brent crude climbed 0.78 per cent to USD 76.45 per barrel.
"Positive global cues, a healthy result season, and consistent FII buying have been providing support to the market. We expect the market to resume its upward journey after taking a pause this week," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.
