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Indian benchmark indices, the BSE Sensex and Nifty 50, gained at the opening bell on Friday, reflecting positive momentum in global markets.
Stock Market Rally Ahead?
Indian benchmark indices, the BSE Sensex and Nifty 50, gained at the opening bell on Friday, reflecting positive momentum in global markets.
At 3 PM, the BSE Sensex was at 79,095, up 1,940 points, or 2.51 per cent, while the Nifty 50 was at 23,905, up 555 points, or 2.38 per cent.
After the opening bell, 20 out of the 30 stocks on the BSE Sensex were trading higher, with gains of up to 1.17 per cent, led by SBI, followed by ICICI Bank, Tata Motors, IndusInd Bank, and Tech Mahindra. On the downside, Adani Ports & SEZ was the biggest drag, down 3.28 per cent, followed by TCS, ITC, Titan, and Nestle India.
On the Nifty 50, 40 out of the 50 stocks were in the green, with HDFC Life leading the gains (up 1.33 per cent), followed by ONGC, SBI, Tata Motors, and ICICI Bank. The biggest losers included Adani Enterprises (down 2.48 per cent), followed by Adani Ports & SEZ, TCS, Titan, and Axis Bank.
All sectoral indices were trading higher, with the PSU Bank index showing the biggest gain, up 1.75 per cent, followed by the Realty and Oil sectors.
In the broader markets, the Nifty Midcap 100 was up by 0.62 per cent, while the Nifty Smallcap 100 gained 0.71 per cent.
The India VIX, a gauge of market volatility, was down 2.20 per cent.
The market can recover from the present levels since yesterday’s selling was largely due to the fall out of the Adani issue. But considering the headwinds the market is facing, a sustained recovery is unlikely. The strength in the broader market should not be confused with the fundamental strength of the segment. The strength of the broader market, particularly the midcaps, is due to liquidity and not fundamentals. Fundamental strength and safety are in large-caps. Banking and IT are fairly valued. FMCG, metals and Oil & Gas are weak, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Global Cues
Markets in the Asia-Pacific region mostly rose on Friday, tracking gains on Wall Street.
Japan’s Nikkei 225 jumped 0.78 per cent while the broad-based Topix rose 0.53 per cent.
Elsewhere, Australia’s S&P/ASX 200 was ahead by 0.92 per cent, and South Korea’s Kospi was higher by 1.12 per cent while the small-cap Kosdaq was ahead by 0.81 per cent.
Hong Kong’s Hang Seng index was trading 0.35 per cent higher, while mainland China’s CSI 300 was nearly flat with a positive bias, up 0.02 per cent. The Shanghai Composite was lower by 0.16 per cent.
Apart from that, an index of global stock markets edged higher in choppy trading on Thursday as investors digested lackluster revenue forecasts from artificial-intelligence chipmaker Nvidia and bitcoin approached the $100,000 milestone.
On Wall Street, the three main indexes finished higher in a choppy session led by gains in utilities, financials, consumer staples and industrials. The Dow Jones Industrial Average rose 1.06 per cent to 43,870.35, the S&P 500 rose 0.53 per cent to 5,948.71 and the Nasdaq Composite rose 0.03 per cent to 18,972.42.
