Sensex and Nifty reversed trend in the last hour of trade and closed higher on Friday amid heavy buying in realty, pharma and FMCG stocks. Extending gains for the third straight session, Sensex closed 233 points higher at 32,424 and Nifty gained 90 points to 9,580.
Sensex has gained 1,823 points in the last 3 sessions while Nifty has risen 551 points during the same period. During this week, both Sensex and Nifty gained 6% each. Axis Bank, followed by IndusInd Bank, Bajaj Finance, Tata Steel, Infosys, HDFC twins and ICICI Bank were among the top losers. On the contrary, Bajaj Auto, ITC, Sun Pharma, Asian Paints and L&T were among the top gainers on the Sensex pack.
However, Asian markets were subdued on account of geo-political tensions between US-China. Asian stocks traded lower on Friday, in line with US equities as rising trade tensions between the world's two biggest economies dulled risk appetite. This, coupled with the China-Hong Kong situation kept overall market sentiment weak.
US President Trump said he'd hold a press conference to discuss China, potentially stoking tensions between the world's two largest economies. US Futures (Dow Jones) traded at 25361, down 96 points or 0.38%. Meanwhile, SGX Nifty traded down 22 points at 9,403.75.
FMCG, pharma stocks rally: Amid weak cues from global markets, indices opened lower, although erased early losses and reversed trend by the last hour of the session, amid rally in sector specific action. Barring IT and media, all the indices closed higher, amid heavy gains in realty, pharma and FMCG stocks.
Ajit Mishra, VP-Research, Religare Broking said, "Mostly sectoral indices participated in the move wherein realty, pharma and FMCG topped the gainers' list. The broader indices too witnessed decent traction and gained nearly a percent each."
GDP data anticipation: Indices ended the week on a positive note, with domestic investors anticipating GDP data, scheduled to be out later in the day. This was contrary to the global trend, as sentiments were cautious on account of geo-political tensions between US-China, which offset positive news of stimulus and economies opening up.
Vinod Nair- Head of Research- Geojit Financial Services said, "GDP is expected to slow down rapidly in the March quarter and markets will be looking at the associated commentary to understand the course of recovery."
Rupee ends higher: On the currency front, rupee closed at 75.62 per dollar as against the last closing value of 75.75 per dollar.
"There could be several sanctions put forth by the US on China, which will sour risk appetite further, given the long-standing history of trade war between the two sides, "said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking adding, "We expect the rupee to trade in the 74.80 to 76.60 band for the next few weeks."
Technical outlook: In the recent trades, Nifty has moved further from its earlier consolidation phase between 9,100-9,200 and is expected to test 9,700 in a short term bullish trend, suggest experts.
Expressing views on Nifty's near term outlook, Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote said, "We expect the Nifty50 index to catch up with global markets and move in tandem with other indices as an equity asset class since the problem is more global in nature and not only country-specific. A decisive break of the range of 9900-10000 still looks quite difficult and another round of equity sell-off cannot be ruled out unless we test and retest this range," he added.
Businesses reopening from May 31: Despite the record rise in infected cases within domestic grounds, markets sentiments were buoyed by hopes of businesses reopening from lockdown restrictions. Meanwhile, the total number of infected cases from coronavirus in India has crossed 1.65 lakh, including 4,706 fatalities. Globally, there are 58.10 lakh Covid-19 cases, including 3.60 lakh deaths.