UltraTech Cement, HDFC, HDFC Bank, Axis Bank, ICICI Bank, Titan Company, Kotak Mahindra Bank and Hindustan Unilever were the major gainers.
UltraTech Cement, HDFC, HDFC Bank, Axis Bank, ICICI Bank, Titan Company, Kotak Mahindra Bank and Hindustan Unilever were the major gainers.
Equity benchmark Sensex extended its winning run in the sixth straight session on Friday to reclaim the 56,000 level on strong gains in banking and financial stocks amid a largely positive trend in overseas markets.
The 30-share BSE benchmark ended 390.28 points or 0.70% higher at 56,072.23. It rose 504.1 points, or 0.90%, to 56,186.05 during the day.
The broader NSE Nifty climbed 114.20 points, or 0.69%, to 16,719.45.
UltraTech Cement, HDFC, HDFC Bank, Axis Bank, ICICI Bank, Titan Company, Kotak Mahindra Bank and Hindustan Unilever were prominent among the Sensex constituents.
Infosys, NTPC, Power Grid, Wipro and IndusInd Bank were the major laggards.
The market trend was in favor of the upside with 18 out of 30 Sensex stocks closing in the green.
In the broader market, the BSE Smallcap gauge moved up 0.21%, while the Midcap index fell 0.17%.
A total of 1,781 stocks rose, while 1,541 declined and 147 remained unchanged.
Among the BSE sectoral indices, the bank jumped 1.49%, followed by finance (1.36%), basic goods (1.26%) and realty (0.37%).
Power, tech, telecom and IT were among the laggards.
“Equities witnessed a strong rally this week with benchmark indices such as BSE-30 and Nifty-50 indices giving 4 per cent returns. The market rally was broad with positive returns in BSE Midcap, BSE Smallcap and most sectoral indices. BSE Metal, BSE IT and BSE Capital Goods indices rose over 5 per cent this week.
Shrikant Chauhan said, “It appears that equity markets have been supported by expectations of a peak inflation amid a fall in commodity prices and a slowdown in FII sales. In fact, FIIs have been trading for a few days so far in July 2022. There have been buyers for…,” said Shrikant Chauhan, Head of Equity Research (Retail) at Kotak Securities.
In the near future, markets will keep an eye on the upcoming Fed Reserve meeting, currency movement and quarterly results, he said.
Meanwhile, the rupee fell by 5 paise to Rs 79.90 against the US dollar.
In Asia, markets in Tokyo and Hong Kong closed higher, while Seoul and Shanghai ended lower.
European markets were trading in the green during mid-session deals. The US stock markets closed with gains on Thursday.
“Increased foreign investment and solid quarterly results are driving domestic demand. Banking stocks outperformed on healthy quarterly earnings, amid broad-based buying. European markets traded with marginal gains, while investors took the latest plunge. The ECB digested monetary policy as it joined global counterparts. “Policy tightening,” said Vinod Nair, head of research at Geojit Financial Services.
Meanwhile, international oil benchmark Brent crude fell 0.51% to $103.33 per barrel.
“Slowdown in crude oil prices and rebound in FII inflows in the domestic market helped the benchmark Sensex to close above the psychological level of 56,000. Fears of aggressive rate hikes by both the US Fed and RBI seem to be easing, which is the reason why we will not be able to do so.” Giving investors some space to invest in stocks of companies with good fundamentals.
Extending the rally for the sixth straight session, investors opted for banking and automobile stocks, said Amol Athawale, deputy vice-president, technical research, Kotak Securities Ltd.
Foreign institutional investors were net selling on Thursday, selling shares worth Rs 675.45 crore, according to exchange data.
“Markets extended gains and continued the current trend with a gain of over half a percentage point. After the initial uptick, the benchmark used to oscillate in the range but finally settled around the day’s high.
Ajit Mishra, VP-Research, Religare Broking Ltd, said, “Profits in banking, realty and auto supported the upside, while gains in IT, pharma and energy. Meanwhile, the broader indices traded mixed.”
The market ended on a bullish run for the sixth consecutive day, as enthusiastic investors took heart from this week’s signals that foreign funds (FIIs) were back in the Indian stock markets. According to Prashant Taapsee, Vice President (Research), Mehta Equities Ltd, FIIs have been net buyers for all trading days of this week.
“Domestic equities continued their journey northwards on the back of positive global cues and better-than-expected 1QFY23 earnings. Nifty opened higher at 16,719 levels with a gain of 114 points (0.7%) and sustained momentum at day’s high .
“Global markets were positive despite an astonishing 50 basis points increase by the European Central Bank, its first hike in 11 years and weak German manufacturing PMI data,” said Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd.