Equity benchmarks snapped four-day losses on Friday with the Nifty closing above 7600-mark, supported by short covering in index heavyweights Infosys, Tata Motors, HDFC Bank, Reliance Industries and ITC. It was especially after a massive 554-point fall on the Sensex in previous session following global turmoil driven by China post yuan devaluation.
The 30-share BSE Sensex rose 82.50 points to 24934.33 and the 50-share NSE Nifty climbed 33.05 points to 7601.35 but the broader markets outperformed benchmarks.
The BSE Midcap and Smallcap indices rallied more than 1 percent. The market breadth was strong as more than two shares advanced for every share declining on the Bombay Stock Exchange.
Although sentiment for India remains positive, it cannot remain completely unaffected by global cues, says Vikas Khemani of Edelweiss Securities.
According to him, people are struck with panic and fear about future because of yuan devaluation. current geo-political scenario has left investors confused on how things will turn out, he says, adding next 3-6 months will be volatile.
Vivek Gupta, CapitalVia Global Research says macroeconomic data, trend in global markets, investment by foreign institutional investors, movement of rupee against US dollar and movement of crude oil prices will dictate trend of the market in near term and also CPI, IIP data to be announced on January 12 and WPI data to be announced on January 14.
For the week, the Sensex tumbled 4.7 percent and the Nifty crashed 4.5 percent following geo-political tensions, China fears, multi-year low by crude oil prices etc.
Globally markets (barring Nikkei) recovered after China mayhem eases today. China’s Shanghai gained 2 percent after a bloodbath yesterday due to yuan devaluation that led a trading halt. Hang Seng rose 0.6 percent while Nikkei fell 0.4 percent. European markets were also marginally higher (at 16 hours IST).
On home turf, Sun Pharma climbed over a percent after CLSA has maintained buy rating on the stock as it expects 72 percent year-on-year growth in FY17 earnings per share of the company.
Infosys and TCS gained over a percent ahead of December quarter earnings next week. IndusInd Bank will also declare its quarterly numbers next week, which advanced over 2 percent.
Tata Motors bounced back sharply, up 3 percent on short covering after a 6 percent fall in previous session on China fears.
Cipla topped selling list on Sensex, down 2.6 percent. The drug major yesterday announced creation of a 6-member ‘Management Council’ that will be the apex executive leadership team for the company.
L&T declined 2 percent despite getting big orders. The infrastructure and engineering major has bagged more than Rs 5,300 crore worth of projects in two days (Thursday, Friday).
Among others, HDFC Bank, Reliance Industries, ITC, Axis Bank, ONGC and Wipro were up over a percent while ICICI Bank, HDFC, Maruti Suzuki, Adani Ports, HUL and Bajaj Auto were losers.
In broader space, Mphasis gained 2 percent after sources told CNBC-TV18 that Japanese IT firm NEC is eyeing acquisition of the company.
IVRCL rallied 5 percent on orders worth Rs 351 crore while Ashoka Buildcon jumped over 5 percent after acquiring stake in Jaora-Nayagaon toll road.