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Snapping six days of losing streak, domestic equity indices Sensex and Nifty managed to end higher on Friday, on the first trading session of August F&O.
Markets opened lower and traded volatile earlier, backed by sluggish global cues. Although gains in auto and banking stocks helped the indices cap losses by the last hour of trade.
"Rebound in index majors from banking, auto and financials pack not only pared the intraday losses but also aided the index to close around the day's high", said Ajit Mishra Vice President from Religare Broking Ltd.
He advised to exercise extra caution in stock selection and further added that "On the sectoral front, select private banks, financials and infra stocks are showing resilience and are likely to do well, while metal, realty and IT may continue to trade mixed."
"The expectation of above-average rainfall in coming weeks provided some respite to broad indices," said Vinod Nair, Head of Research, Geojit Financial Services. "A decisive up move will require liquidity from FIIs which is now in doldrums while any signs of stability and development in economic activity can change the situation," he added.
On the currency front, Rupee opened with minor gains at 68.14 and fell to 68.91 against the dollar later.
In earnings related news, Bank of Baroda share jumped over 4% after the state-run lender turned profitable in June quarter. Similarly, shares of Jubilant Industries rallied 20% after the company reported higher-than-expected earnings.
Contrary to this, Tata Motors share rose nearly 4% despite the automotive manufacturing company reporting a consolidated net loss in the first quarter. Shares of Bajaj Auto too climbed 5% intraday despite the manufacturer of motorcycles, scooters and auto rickshaws posting 2.84% decline in its consolidated net profit on a yearly basis.
The stock price of PNB rose 5% intraday even after the state-owned lender posted a surprise profit of Rs 1,019 crore during the April-June period.
Despite declining profit and sales, Maruti Suzuki stock rose over 3% intraday and closed in the green, after falling to a fresh 52-week low of Rs 5,685.15 in early trade.
Except for the earnings impact, shares of YES Bank rose over 10% to Rs 96.5 on Friday, after media reports suggested that institutional investors TPG Capital's Indian private equity arm and Advent International Corp are likely to infuse fresh capital into the private lender.
In other news, SEBI said in its capital market review that the public and private equity issuance declined, but debt investment by private placement continued its upward pace for the month of July.
On the global front, US future gave up record highs on the back of downbeat quarterly results, while equities in Europe rose slightly following yesterday's drop due to ECB disappointment. Elsewhere in Asia, Shanghai, Nikkie and Hang Seng indices traded higher, while Kospi in South Korea declined by the end of their respective sessions.
Edited by Rupa Burman Roy
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