The Indian benchmark indices bounced back sharply with the Nifty crossing its 52-week high amid positive global cues on the back of a cool-off in the US inflation data and appreciation in the rupee.
At close, the Sensex was up 1,181.34 points or 1.95 percent at 61,795.04, and the Nifty was up 321.50 points or 1.78 percent at 18,349.70.
“The domestic market joined the global run as markets across the world cheered the lower-than-expected US inflation data. The US dollar slumped along with treasury yields as investors evaluated the likelihood of a less hawkish rate hike by the Fed,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Reduced treasury yields will aid to improve FII inflows. The rally of the domestic market was led by IT stocks as recession fears reduced and HDFC twins after merger overhang,” he added.
Intraday, the BSE Sensex and Nifty50 touched highs of 61,840.97 and 18,362.30, respectively.
The Nifty50 has crossed its 52-week high of 18,350.95, while the Sensex is still 404 points away from its 52-week high.
The Indian rupee closed 100 paise higher at 80.81 per dollar against Thursday’s close of 81.81.
Stocks and sectors
HDFC, HDFC Bank, Infosys, HCL Technologies and Tech Mahindra were among the top Nifty gainers, while lower were Eicher Motors, Hero MotoCorp, Britannia Industries, SBI and M&M.
Among sectors, the Nifty Information Technology index gained 3.8 percent and the Nifty Metal index rose 2 percent, The Nifty Bank index added 1.2 percent. On the other hand, the Nifty PSU Bank index fell 0.6 percent.
The BSE midcap and smallcap indices ended on a flat note.
On the BSE, the Information Technology index rose 3.7 percent and the metal index added 2.2 percent. Bank, capital goods, oil & gas, and realty indices were down one percent each. However, some selling was seen in the auto and FMCG names.
Among individual stocks, a volume spike of more than 400 percent was seen in Persistent Systems, Coforge and HDFC.
A long build-up was seen in Info Edge India, Coforge and HDFC Bank, while a short build-up was seen in GNFC, Indian Hotels and Eicher Motors.
More than 100 stocks touched their 52-week high on the BSE, including, Union Bank Of India, Adani Enterprises, Bank Of Baroda, Bharat Forge, Cochin Shipyard and ITC.
Outlook for November 14
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Global markets witnessed a rally, as the US CPI print softened and possibly enhanced hopes of some moderation in future rate hikes by the central banks. The US 10-year treasury yield also softened post US inflation coming in weaker than expected.
The Sensex and the Nifty saw positive returns this week whereas the BSE Midcap and the BSE Small-cap index witnessed a marginal decline. On a sectoral basis, the BSE IT and the BSE Banker index were leading gainers, whereas the BSE Healthcare and the BSE Auto were under pressure. Meanwhile, Q2FY23 earnings performance has been ahead of expectations, driven by bank results.
The net FPI flows have been positive this week. Now, as we enter the last few days of the result season, the market focus going ahead will gradually shift towards global and domestic macro data points, that includes inflation, and central bank action, amongst others.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities
Across the globe, stock market investors cheered the softening of the US CPI data that led to a humongous rally on Dalal Street. Traders the world over are now hoping that with the inflation level cooling, the US Fed may maintain the status quo on rate hike in its December meeting before reversing the trend going ahead if the reading shows further moderation.
Technically, the Nifty not only cleared the short-term resistance of 18,300 but closed above the same which is broadly positive. A bullish candle on daily and weekly charts and range breakout formation are indicating further upside from the current levels.
For traders, 18200-18150 would act as key support zones. If the index trades above the same then it could move till 18500-18600. However, below 18,150, the uptrend would be vulnerable.
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