Indian benchmark equity indices, Sensex and Nifty, extended their winning streak for a third consecutive day, driven by a rally in IT stocks and global cues suggesting a more accommodative monetary policy after softer-than-expected US jobs data.
Key Points
- The BSE Sensex rose 261.79 points (0.34%) to 77,763.91, while the NSE Nifty gained 95.15 points (0.39%) to 24,270.85, marking a third consecutive day of gains.
- IT stocks, including HCL Tech and Tech Mahindra, led the rally, contributing significantly to the market's positive performance.
- Softer-than-expected US jobs data tempered expectations of immediate monetary tightening by the Federal Reserve, boosting global market sentiment.
- Positive outcomes from the India-Japan Summit and softening crude oil prices further supported domestic market sentiment and the inflation outlook.
- Foreign Institutional Investors (FIIs) offloaded equities worth Rs 311.82 crore on Thursday, indicating some profit-booking despite the overall positive trend.
Benchmark equity indices Sensex and Nifty ended higher on Friday, extending their winning momentum to the third day running, amid a rally in IT stocks and a softer-than-expected US jobs data tempering expectations of near-term monetary tightening by the Federal Reserve.
The 30-share BSE Sensex climbed 261.79 points, or 0.34 per cent, to settle at 77,763.91.
During the day, it jumped 655.4 points, or 0.84 per cent, to 78,157.52.
The 50-share NSE Nifty went up 95.15 points, or 0.39 per cent, to end at 24,270.85.
Top Performers and Laggards
From the Sensex pack, HCL Tech surged 5.79 per cent, followed by Tech Mahindra which climbed 1.81 per cent.
Bharti Airtel, Sun Pharma, Bajaj Finserv, UltraTech Cement, Tata Steel Bajaj Finance, Tata Consultancy Services, and ICICI Bank were also among the winners.
Axis Bank, State Bank of India, Mahindra & Mahindra, and Larsen & Toubro were among the laggards.
Global Market Overview
In Asian markets, South Korea's Kospi rebounded nearly 6 per cent. Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index also ended in positive territory.
"Domestic markets closed the session higher, despite intermittent volatility and profit-booking, aided by supportive global cues and growing expectations of a more accommodative global rate environment following softer US labour market data.
"Sentiment was further lifted by positive outcomes from the India-Japan Summit and continued recovery in the IT sector," Vinod Nair, Head of Research, Geojit Investments Ltd, said.
Macroeconomic Factors
On the domestic front, softening crude oil prices remain a key macro tailwind, supporting the inflation outlook, external balances, and overall economic stability, he added.
Markets in Europe were quoting on a mixed note.
US markets ended on a mixed note, with the Dow Jones Industrial Average surging 1.14 per cent, while the Nasdaq Composite declining 0.80 per cent. The S&P 500 ended flat.
Brent crude, the global oil benchmark, went up 0.24 per cent to $71.97 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 311.82 crore on Thursday, according to exchange data.
