Market indices ended higher on Friday, amid mixed global equities, backed by heavy buying in banking and financial stocks. Sensex ended 254 points higher at 39,982 and Nifty gained 82 points to 11,762. Today, RBI is also set to release its weekly FX reserves figures.
Yesterday, market indices fell heavily on profit-booking after 10 days of consecutive gains amid heavy volatility in global markets, with Sensex ending 1,066 points lower at 39,728 and Nifty losing 290 points to 11,680.
Sectorally, barring IT and media, all the other indices closed bullish today, with over 3% gains registered in metal and around 1.5-2% gain in banking, realty, pharma and financial indices.
IndusInd Bank, Hindalco, Tata Steel, Infosys, ONGC, BPCL, Cipla, Kotak Bank, NTPC and Bharti Airtel were among prominent gainers. On the other hand, Asian Paints, Sun Pharma, Nestle, RIL, M&M, HCL Tech were among the top losers.
Meanwhile, September quarterly earnings announcements by HCL Technologies, Bajaj Consumer Care, Federal Bank, Tata Communications, Tinplate Company, and Phillips Carbon Black also kept the tone for the stock market bullish today.
S Ranganathan, Head of Research at LKP Securities said, "At 40k SENSEX today the market mood was far from cheerful despite Metals & Pharma stocks posting gains. Selective buying in Midcaps by savvy investors notwithstanding the general mood in the broader markets was that of caution as profit booking was seen across several sectors".
In the forex market, after witnessing a volatile trading session, rupee closed at 73.35, higher by just 1 paisa from its previous close of 73.36.
Overseas, stocks were trading mostly mixed on Friday, as investor sentiment was dampened with European governments reinstating pandemic restrictions to curb a second wave of the coronavirus.
With coronavirus cases increasing across the globe once again, Asian markets closed subdued on the last trading day of the week, while European indices opened in the green territory.
Stocks on Wall Street closed lower for the third consecutive day on Thursday. Traders said while the announcement of US stimulus before elections kept hopes up, corona infections climbing across Europe weighed on sentiments.
Ajit Mishra, VP - Research, Religare Broking said," Indications are in the favour of consolidation in Nifty. Thus, we suggest continuing with the stock-specific trading approach and maintaining positions on both sides. However, it's easier said than done due to prevailing choppiness. Meanwhile, global cues will be on the radar as US elections are just around the corner as well as the second wave of Covid-19 infection has led to more lockdown and restriction. Any further rise in restrictions could severely impact investors' sentiments."
"The market trend has turned weak due to high stock prices in spite of the lack of required financial support and the rising spread of covid impacting economic recovery. The quick bounce of the market to above last high and near the pre-covid level has brought volatility, which can stay for some time said," Vinod Nair, Head of Research at Geojit Financial Services.
He added," For Nifty 5o strong support is at 11,500 limiting the downside, in the near-term. The market will look forward, with high hopes on Q2 results and update on stimulus plans. IT, Telecom, Pharma and Banks will be the sectors under focus with a positive bias."
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, "We did not have much happening in the markets today. The support of 11550-11600 is still intact and therefore we continue to be in a bullish environment. Next week could prove crucial as we need to see if the Nifty is able to get past the 11950-12000 level or the bears take over and break the levels of 11500."
Worldwide, there were 391 lakh confirmed cases and 11.02 lakh deaths from the COVID-19 outbreak. India's COVID-19 caseload was at 73-lakh mark and the death toll from COVID-19 infections rose to 11.2 lakh, as of today.