Equity benchmark indices Sensex and Nifty on Friday (October 27) reversed their six-session losing streak and rebounded more than 1% on value buying in auto, IT, financial and energy stocks.
Better than expected quarterly financial results of corporates also boosted investor sentiments even as uncertainties persisted over the escalating tensions in the Middle East, according to analysts.
In a largely range-bound trade, the 30-share BSE Sensex rose 634.65 points or 1.01% to settle at 63,782.80 points. During the session, it swung between a high of 63,913.13 points and a low of 63,393.37 points.
Likewise, the wider gauge Nifty surged 202.45 points or 1.07% to 19,059.70 points.
“The domestic market recovered well compared to yesterday’s sharp corrections, due to restrained FII selling along with moderation in currency and global bond yield volatility.
“To date, the Q2 results outcome is decent, which is in line with the buoyant estimate. Yet, the market is not enthusiastic as we are at the cusp of earnings downgrade in anticipation of a further slowdown in the world economy due to elevated interest rates and geopolitical risk,” Vinod Nair, Head of Research at Geojit Financial Services, said.
Axis Bank was the biggest gainer in the Sensex pack, rising 3.07%, followed by HCL Tech, SBI, NTPC, Tata Motors, Nestle India, and Infosys.
Shares of index heavyweight Reliance Industries witnessed heavy buying as it surged 1.75% to close at ₹2,265.25 apiece. The company will announce its quarterly financial numbers after market hours.
Maruti Suzuki India on Friday reported a whopping 80.3% increase in net profit at ₹3,716.5 crore in the July-September quarter driven by better sales, softening commodity prices, cost reduction efforts and higher non-operating income.
On the other hand, Asian Paints, Ultratech Cement and ITC were the laggards.
In the broader market, the BSE midcap gauge gained 1.70% and the smallcap index rose 1.89%.
All the sectoral indices ended in the green, utility gained 2.22%, power jumped 2.04%, services (1.79%), industrial (1.63%), realty (1.63%) and IT (1.36%).
In six trading sessions till October 26, Sensex had declined 3,279.94 points.
In Asian markets, Seoul, Shanghai, Tokyo and Hong Kong ended with significant gains on Friday.
European markets were trading on a mixed note. The U.S. equity indices ended in negative territory on Thursday.
Global oil benchmark Brent crude rose 2.50$ to $90.13 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹7,702.53 crore on Thursday, according to exchange data.