Bulls stage a comeback, Sensex rallies 1.2 per cent on global cues
NEW DELHI: India’s equity market bounced back sharply in opening trades on Friday after the US market made a recovery and rallied over 2% on Thursday despite the nation reporting a higher-than-expected inflation from the month of September.
BSE Sensex soared to a high of 58,435 in intra-day deals and ended 685 points, or 1.20%, higher at 57,920. The broader Nifty 50 index, which rallied past the 17,300-level in early deals, finally settling at 17,186, up 171 points, or 1.01%. The rally in the domestic market was led by large caps, with IT and banking at the forefront due to the robust start to Q2 earnings.
In Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong also ended higher. “The domestic market showed an uptick, in-line with surprise bounce in the US market. Initially the US market fell because the data exceeded the forecast. However, it recovered quickly, due to the oversold state of the market,” said Vinod Nair, head of research at Geojit Financial Services. He added that the rally can continue in the short-term, led by festival demand, Q2 results and positive trend in the global market. From the Sensex pack, Infosys jumped nearly 4%, followed by HDFC twins, HCL Technologies, Larsen & Toubro, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance and State Bank of India.
India’s second-largest IT services company Infosys gained after its healthy Q2FY23 performance and Rs 9,300 crore share buyback. Analysts, at large, expect more buying in the stock in the coming session.
Despite bull market, foreign institutional investors (FIIs) remained net sellers in the Indian capital market on Friday, as they offloaded shares of Rs 1,011 crore, as per exchange data. S Hariharan, head - institutional equity sales, Emkay Global Financial Services, said, “FII flows into India have turned negative for the last few sessions, after a positive start in Oct. As a result, despite expectations of a strong earnings season, the broader market has been moving sideways, with DII inflows offsetting FII selling.”
Rally in Indian market led by large caps
Rally in the domestic market was led by large caps, with IT and banking at the forefront due to robust start to Q2 earnings. Infosys gained after its healthy Q2FY23 performance and Rs 9,300 crore share buyback. In Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong ended higher