Bulls attempted another comeback at Dalal Street on Friday as the positive global sentiments to revive beleaguered lenders bolstered the sentiments. However, the gains were trimmed within a few initial minutes of trading but benchmark indices managed to trade in the green.
An agreement by a group of big banks to deposit $30 billion with troubled lender First Republic Bank helped soothe fears of a rolling banking crisis. Multi-billion-dollar lifelines for troubled US and European banks shored up investor confidence
At 9.25 am, the 30-share pack BSE Sensex was trading 386.97 points, or 0.67 per cent, higher at 58,021.81. NSE's Nifty50 rose 113.25 points, or 0.67 per cent, to 17,098.85. Broader markets outperformed the headline peers as BSE midcap and smallcap indices jumped a per cent, each. Fear gauge India VIX dropped about 5 per cent to 15.41-level.
Nifty snapped a five-day fall in a volatile session on Thursday, said Deepak Jasani, Head of Retail Research, HDFC securities. "Nifty formed a long-legged doji after a fall, hinting at a short-term reversal to the upside. It could rise towards 17224 over the next few days," he said.
On a sectoral front, Only Nifty Media and FMCG indices were trading in the red. Among the gainers, the Nifty Realty Index was up 2 per cent, whereas the Nifty Metal index jumped over a per cent. Nifty Bank, IT, Financial Services and Auto Indices were the other top gainers.
Adani Group stocks were trading higher as three stocks from the Gautam Adani-led conglomerate moved out of the short-term additional surveillance mechanism framework from Friday. Adani Enterprises, Adani Wilmar and Adani Power rose 2 per cent each, whereas Adani Green Energy and Adani Transmission jumped up to 5 per cent, each.
HDFC Life Insurance topped among the gainers in the Nifty50 pack, rising 3 per cent. It was followed by Infosys, which added about 2 per cent. Ultratech Cement, Larsen & Toubro, Tata Motors and HCL Technologies were among the other top gainers. Among the losers, Bharat Petroleum dropped over a per cent on the back of profit booking. Eicher Motors, Hero Motocorp and Sun Pharma were the other top laggards among the blue-chip counters. There are indications of the storm in the global banking sector blowing over. The authorities including the US treasury, the Fed, the Federal deposit insurance corporation and the Swiss central bank have acted timely and decisively to contain the crisis and calm the markets, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "Declining fiscal and current account deficits along with a healthy banking system and deleverage corporate sector can deliver good growth and corporate earnings in FY24. The recent market correction has also made valuations reasonable. This is positive news from the market perspective," he said.
TCS dropped open as Rajesh Gopinathan will step down as CEO of the IT major with effect from September 15, 2023. The company has appointed Krithivasan as the new CEO-designate.
Zee Entertainment plunged about 4 per cent after the company scrapped the reports claiming payment of $10 million loans of IndusInd Bank, whereas Patanjali Foods fell another 3 per cent as BSE and NSE froze the shareholding of its promoters and promoter group. Among the gainers, HLE Glasscoat jumped more than 10 per cent, whereas Jubilant Pharmova gained over 7 per cent after the pharma player announced an additional loan facility by the Government of Canada for the expansion of its CMO Montreal facility. KPIT Technologies was up 6 per cent.
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