Sensex rises 145 points to end at fresh 2016 high; midcaps outperform

In the broader market, both the BSE Midcap and Smallcap indices, were up 1.2% and 0.7% each

Benchmark indices gained for the fifth straight session registering their best weekly gain in five to end at fresh 2016 closing highs on sustained FII buying while encouraging manufacturing data and progress of the monsoon boosted sentiment.

The S&P BSE Sensex rose 145 points to close at 27,145 and Nifty50 surged 41points to end at 8,328 after topping 8,350 in intra-day trade. In the broader market, both the BSE Midcap and Smallcap indices, up 1.2% and 0.7% each performed better than the front-liners.

"As widely expected by the markets, Britain chose to exit from the Euro zone. The move is expected to have a catastrophic effect on most risk assets globally, especially the Euro regions. Easing inflation would give RBI enough leeway to consider rate cuts in the future which would be a big plus for the economy. Overall, we expect to markets to remain weak for coming sessions and remain in the range of 7600-8300 Nifty over the medium term," said Achin Goel, Head - Wealth Management & Financial Planning, Bonanza Portfolio. 

On Thursday, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,107 crore as per provisional data released by the stock exchanges.

Manufacturing activities rose in June to a three-month high as new orders were forthcoming from near flat in the first two months of the current financial year, widely-tracked Nikkei Purchasing Managers' Index (PMI) showed on Friday. PMI rose to 51.7 points in June from 50.7 in the previous month.

Besides, the southwest monsoon is likely to hit the national capital in two or three days as it picks up the pace and advances further to parts of the northwest India, the meterological department said on Wednesday.

Asian stocks rose on Friday and European markets were expected to follow as investors continued to recover from last week's Brexit shock, but the pound came under fresh pressure after the Bank of England's governor hinted at an interest rate cut ahead.  MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 %.

Back home, extending its gains for the third day, the rupee was trading strong at 67.40 on sustained dollar selling by banks and exporters.

Metal and mining stocks extended previous trading session's gains triggered by the Union Cabinet approving the National Mineral Exploration Policy (NMEP) for accelerating the exploration activity in the country through enhanced participation of the private sector. Tata Steel, SAIL, JSPL, Hindalco and NMDC were up 1%-6%.

Capital goods majors like L&, BHEL and Thermax surged upto 4% after manufacturing activities rose in June to a three-month high.

Pharmaceutical shares were in focus with the Nifty Pharma index set to post its biggest weekly gain in past six months after US drug regulator successfully inspected manufacturing facilities of three pharma companies.

Dr Reddy’s Laboratories, Lupin, Cipla, Marksans Pharma, Suven Life Sciences, Sanofi India, Aurobindo Pharma and JB Chemicals, Torrent Pharmaceuticals are among 21 pharma stocks from Nifty 500 index, that rallied more than 5% during the current week.

Maruti Suzuki slipped after the company saw its first double digit monthly sales decline in recent history as it lost production due to disruption in component supply and a maintenance shutdown. The company’s sales in the domestic market slipped 10.2% in June, while exports saw a deeper cut of 45%.

ITC gained over 3% on the National Stock Exchange (NSE). The stock was traded ex-bonus (1:2) on Friday.

Jaiprakash Associates' plan to sell 21.2 million tonne per annum (mtpa) cement capacity to UltraTech Cement for Rs 15,900 crore is on track, claim both the companies. Shares of JP Associates slipped almost 3%.

Equitas Holdings gained over 3% after the company announced that it has received final approval from the Reserve Bank of India to launch a Small Finance Bank.  

Mahanagar Gas (MGL) listed at Rs 540, a 28% premium against issue price of Rs 421 per share, on the National Stock Exchange.

KPIT Technologies dipped 13% after the company said that it expects decline in revenues of around 4% in June quarter (Q1) with a consequent drop in profitability.