Markets logs biggest gain of 2023 as Adani stake sale lifts sentiment
On the sectoral front, banking, financials and energy majors largely contributed to the gains. The broader indices also participated in the rally and gained in the range of 0.7-0.9 %.
Published: 04th March 2023 08:48 AM | Last Updated: 04th March 2023 08:48 AM | A+A A-
For representational purposes
NEW DELHI: The domestic equity market shrugged off inflation and rate hike worries as key benchmarks - Sensex and Nifty - logged their biggest single-day gain of CY2023 on Friday. Sensex soared to a high of 59,967 on Friday and ended with a gain of 900 points at 59,809, while the Nifty50 settled at 17,594, up 272 points from the previous session closing.
Public Sector banks led the sectoral rally after foreign investments of over Rs 15,000 crore in Adani stocks improved the dampened sentiment. US Federal Reserve official’s comment on a favourable level of a rate hike in the next meeting also boosted sentiments.
“This development (GQG’s purchase of Adani stocks) should support banks, especially PSU banks, which were hammered earlier, despite good performance due to fear of their exposure to the Adani Group,” said Naveen Kulkarni, a chief investment officer of Axis Securities.
Kulkarni expects the markets to have a short-term bounce back due to increased optimism, but is still concerned about global interest rates and higher valuations, which can lead to increased medium-term volatility.“We advise investors to maintain investment discipline and keep investing regularly in equities for long-term wealth creation, especially if the markets are volatile in the short to medium term,” he said.
In the Nifty pack, the share of Adani Enterprises soared 17% to Rs 1,879 and Adani Ports surged 9.7% to Rs 684. Among the other Nifty 50 stocks, SBI surged 5% and Bharti Airtel jumped 3.3%. SBI Life, Tata Steel, ITC, Reliance Industries and IndusBank Bank were up over 2% each.
On the sectoral front, banking, financials and energy majors largely contributed to the gains. The broader indices also participated in the rally and gained in the range of 0.7-0.9 %. Foreign institutional investment (FII) also remained net positive for the second straight session on Friday.
According to Ajit Mishra, VP - of Technical Research, Religare Broking, Nifty has surpassed the hurdle of the long-term moving average i.e. 200 EMA but sustainability would be critical for a further rebound. Meanwhile, we reiterate our view to focus on stock selection and overnight risk management, he said.
