Benchmark indices closed marginally higher on Friday as fag-and-choppiness dented most of the day’s gains amid a largely firming trend in overseas markets. Global investors were in wait-and-watch mode ahead of Federal Reserve Chairman Jerome Powell’s speech at the annual Jackson Hole symposium, where he is expected to provide clues on the US central bank’s rate hike trajectory.
The BSE Sensex started on a strong note and rose over 500 points to hit an intra-day high of 59,321.65, but succumbed to profit-booking at the end of the session. It finally closed at 58,833.87, up 59.15 points or 0.10 per cent. Similarly, the broader NSE Nifty ended 36.45 points or 0.21 per cent higher at 17,558.90.
NTPC was the biggest gainer among Sensex constituents, rising 2.80 per cent, followed by Titan, PowerGrid, Kotak Mahindra Bank, Larsen & Toubro, Tech Mahindra, Tata Steel and Mahindra & Mahindra. On the other hand, IndusInd Bank, HDFC, Asian Paints, Bharti Airtel, Dr Reddy’s and Reliance Industries were among the major laggards, falling 1.92 per cent.
The market trend was positive with 21 out of 30 Sensex stocks closing in the green. “Lack of investor confidence and caution in anticipation of Fed chairman’s remarks led to a significant sell-off at the end of the session. Western markets are trading with cuts as they await clues on further policy actions by the Fed.” So that inflation can be pushed up, which is expected to impact demand.
Vinod Nair, Head of Research, Geojit Financial Services, said, “On the sectoral front, metals and public sector banks led the rally, while IT turned green following continued selling pressure.” On a weekly basis, the Sensex lost 812.28 points or 1.36 per cent, while the Nifty lost 199.55 points or 1.12 per cent.
Sunil Damania, Chief Investment Officer, Marketsmojo, said, “Benchmark indices headed for a weekly decline, ending a 5-week positive streak. Markets saw some profit-booking amid concerns that followed the US Fed’s speech on Friday. seen.” “Indian equities have seen positive momentum in the recent week, with increased foreign funds and moderating domestic inflation numbers. FIIs have pumped in nearly Rs 50,000 crore in equity markets this month, up from the last 20 The recent correction in commodity prices and the US dollar’s retreat from record highs has helped FIIs re-enter the Indian markets.
In the broader market, the BSE Midcap gauge rose 0.40 per cent and the Smallcap index 0.35 per cent in Friday’s session. Metals rose 1.62 per cent in the BSE sectoral index, followed by consumer durables (1.50 per cent), utilities (1.31 per cent), industrials (1.25 per cent), power (1.18 per cent) and basic materials (1.06 per cent). FMCG, healthcare and realty lagged behind.
Elsewhere in Asia, markets in Seoul, Tokyo and Hong Kong ended in the green, while Shanghai closed with losses. European stock markets were trading lower during mid-session deals. Wall Street closed with gains on Thursday.
Meanwhile, international oil benchmark Brent crude jumped 1.14 per cent to $100.5 per barrel. The rupee on Friday edged higher by 6 paise at 79.86 (provisional) against the US dollar, supported by foreign fund inflows. Foreign institutional investors (FIIs) bought shares worth a net Rs 369.06 crore on Thursday, according to exchange data.