Sharp buying interest in IT shares pushed the markets higher
Domestic equity benchmarks Sensex and Nifty continued their upmove on Friday after a pause of two days, as sharp buying interest in IT shares pushed the markets higher. The Sensex jumped as much as 1.14 per cent - or 398.94 points - to 35,241.04 during the session, and the Nifty briefly traded above the 10,400 mark, jumping 1.16 per cent (118.85 points) from its previous close. Gains were capped amid concerns about the rising number of COVID-19 cases in the country, and border tensions with China, say analysts. The indices pared some of the intraday gains, with the 50-scrip reclaiming the 10,350 level at close.
The Sensex ended 329.17 points - or 0.94 per cent - higher at 35,171.27, whereas the Nifty settled at 10,383.00, up 94.10 points (0.91 per cent) from its previous close.
"Market mood remained buoyant on expectations of earlier-than-anticipated normalisation of activities, as most states committed to remain open despite continuous increase in daily COVID-19 cases... Markets are seen entering a consolidation phase in the coming weeks with no major trigger," said Sanjeev Zarbade, vice president-PCG research at brokerage Kotak Securities.
In the 50-scrip Nifty index, Infosys, Bharat Petroleum, Tata Consultancy Services (TCS), Indian Oil and IndusInd Bank ended between 3.76 per cent and 6.64 per cent higher, and were the best performers among the 28 gainers.
On the other hand, Bajaj Finance, ITC, Bharti Infratel, Kotak Mahindra Bank and Tata Motors - finishing the day down 1.73-3.09 per cent each - were the top Nifty losers.
Infosys, HDFC Bank and TCS were the top boosts to the Sensex, whereas ITC, Kotak Mahindra Bank and Bajaj Finance were the top drags.
Market breadth favoured gains with an advance-decline ratio of 3:2, as 1,651 stocks ended higher on the BSE against 1,069 that moved in the opposite direction.
The Nifty IT index - which tracks 10 companies with more than 50 per cent of turnover from IT-related activities - ended 4.05 per cent higher in its biggest single-day jump since April 30, having risen as much as 4.68 per cent during the session. Infosys and TCS were among the top three gainers on both Sensex and Nifty.
"The market today traded on a strong note led by strong gains in technology stocks. Strong buying support was seen by high-net worth-investors and institutions," said Rahul Sharma, head of research at investment advisory firm Equity99 Advisors."Liquidity continues to remain as trade volumes have now started to show a sign of recovery."
Total COVID-19 cases in the country stood at nearly half a million with more than 15,000 deaths, data showed on Friday.
Equities in other Asian markets moved higher with MSCI's broadest index of Asia Pacific shares outside Japan ending a choppy session 0.06 per cent higher and Japan's Nikkei 225 benchmark rising 1.13 per cent.
China's Shanghai Composite and South Korea's KOSPI indices settled 0.30 per cent and 1.05 per cent higher respectively, but Hong Kong's Hang Seng barometer declined 0.93 per cent.
"Global markets were in a consolidation mode after previous weeks of strong rally. Fresh spikes in COVID-19 cases and reports of a further rift between the US and China on the trade front restricted further gains," said Kotak Securities' Mr Zarbade.
The E-Mini S&P 500 futures were last seen trading down 0.01 per cent, indicating a flat start for US markets on Friday.
European shares started the day on a strong note, with the United Kingdom's FTSE benchmark rising 1.67 per cent in early trade. While France's CAC index traded 1.62 per cent higher at the time, Germany's DAX gauge was up 1.09 per cent.
For the week, the Sensex gained 439.54 points (1.27 per cent) and the Nifty added 138.6 points (1.35 per cent), a second straight weekly rise.
Foreign portfolio investors (FPIs) remained bullish on Indian equities, making net purchases of Rs 3,444.05 crore ($453.12 million) during the week, according to exchange data.
FPIs have so far this much brought in net inflows of Rs 22,893.39 crore ($3.03 billion) in domestic shares.
(With inputs from agencies)
