Indices eke out gains to end week in green; Sensex gains 113 points

The markets reflect a 'sense of stability', say analysts

The Sensex and the Nifty eked out modest gains on Friday after a two-session sliding streak, propped up by firm Asian markets and buying from foreign institutional investors. A sharp recovery in the rupee further bolstered investors’ sentiment, traders said.

Overcoming a wobbly start, the 30-share BSE Sensex gained momentum as the session progressed to close 113.95 points or 0.19 per cent higher at 60,950.36. Similarly, the broader NSE Nifty rose 64.45 points or 0.36 per cent to 18,117.15. Bajaj Finserv topped the Sensex gainers’ chart, jumping 4.55 per cent, followed by UltraTech Cement, Tata Steel, SBI, Reliance Industries, Asian Paints, Bajaj Finance and Wipro. In contrast, Dr Reddy’s, Infosys, Hindustan Unilever, HDFC Bank, NTPC, PowerGrid and Bharti Airtel were among the laggards, shedding up to 1.49 per cent. The market breadth was in favour of the bulls, with 18 of the 30 Sensex counters closing in the green.

“The Bank of England in its policy announcement, mirrored the Fed’s view, dashing hopes for a near-term policy softening... pharma and IT sell-off continued due to concerns about the impending recession. The dollar surged along with the US Treasury yield following the hawkish remarks from global central banks, while FIIs continued their domestic support,” said Vinod Nair, head of research at Geojit Financial Services.

On a weekly basis, the Sensex jumped 990.51 points or 1.65 per cent, while the Nifty climbed 330.35 points or 1.85 per cent. The equity market closed marginally higher after a week of relatively lower level of volatility. The hike in rates from Fed and the ECB and the Fed’s assertion that the hard money policy would continue into the next year as well triggered discussions on the likely decline in the rate of growth which could spell trouble for the current calculations on business growth and earnings.

“While the markets reflect a certain sense of stability, overseas developments may still continue to dominate the scene in the weeks ahead. Certainty on the trajectory of rates and greater stability in exchange rates are required to get the overseas investors back into the markets,” said Joseph Thomas, head of research, Emkay Wealth Management.

In the broader market, the BSE smallcap gauge advanced 0.41 per cent and the midcap index closed unchanged. Sector-wise, the BSE metal index spurted 2.90 per cent, followed by commodities, energy, industrials, capital goods and power. Healthcare, IT, teck, consumer durables and bankex logged losses.

On the global front, Asian equities darted up amid speculation that China will relax its ‘Covid-zero’ policy. Markets in Seoul, Shanghai and Hong Kong ended higher, while Tokyo settled in the red. Stock exchanges in Europe were trading in the positive territory in mid-session deals. In the US, stocks rose, with traders weighing mixed jobs figures and awaiting next week’s inflation data for more clues on when the Fed would be able slow down its pace of rate hikes.

Meanwhile, oil jumped to the highest in more than three weeks. Brent crude futures surged more than 4 per cent to near $99 a barrel, with China, the world’s biggest crude importer, said to be working on plans to scrap a system that penalises airlines for bringing virus cases into the country.