“The past few weeks have talked about a high probability of a global recession due to high inflation and high rates.”
“The past few weeks have talked about a high probability of a global recession due to high inflation and high rates.”
Sensex and Nifty marched higher for the third consecutive session on Friday as investors continued to hoard banking, infrastructure and FMCG stocks despite unabated sell-off by foreign funds.
The 30-share BSE benchmark Sensex closed 303.38 points or 0.56% higher at 54,481.84. The broader NSE Nifty rose 87.70 points, or 0.54%, to 16,220.60.
Larsen & Toubro was the top gainer in the Sensex pack, rising 4.72%, followed by PowerGrid, NTPC, ICICI Bank, Axis Bank, Dr Reddy’s, Bharti Airtel and Nestle India.
In contrast, Tata Steel, IndusInd Bank, Maruti Suzuki, TCS, Wipro and Asian Paints were among the laggards, falling up to 1.62%.
Chief Investor VK Vijayakumar said, “The current rally is partly driven by expectation that given the continued fall in commodity prices, inflation will start showing a downward trend, which may lead to central banks raising rates, and Can partially cover short. Strategist at Geojit Financial Services.
On a weekly basis, the Sensex rose 1,573.91 points or 2.97%, while the Nifty gained 468.55 points or 2.97%.
“The high probability of a global recession due to high inflation and high rates has been talked about more in the past few weeks. But the recent fall in prices in commodities, especially oil, and expectations that central banks are going to move slow. The hike in interest rates has brought back some confidence in the minds of investors.
“The growth in equity markets seen over the past few trading sessions this week was based on this view of a possible moderation in inflation, and therefore of rates. However, the actual inflation numbers in the US and India will be released in the coming days. Week, And it will be crucial in deciding the trajectory of the markets,” said Joseph Thomas, Head of Research, Emkay Wealth Management.
In the broader market, the BSE Smallcap gauge rose 0.28% and the Midcap index rose 0.20%.
Among the BSE sectoral indices, capital goods rose 2.23%, followed by electricity (1.71%), utilities (1.58%), industry (1.51%), banks (0.66%) and FMCG (0.54%).
Metals, basic materials and telecommunications were lagging behind.
Global equities were mixed as investors awaited key jobs data from the US, which would offer clues on the Federal Reserve’s rate hike trajectory.
In Asia, markets in Tokyo, Hong Kong and Seoul ended higher, while Shanghai closed marginally lower.
European stock markets fell in mid-session deals. On Thursday, the US markets closed with gains.
Meanwhile, international oil benchmark Brent crude fell 0.12% to $104.5 per barrel.
The rupee on Friday declined by 10 paise to 79.23 (provisional) against the US dollar, tracking the strength of the US currency in the overseas market.
Foreign institutional investors remained net sellers on Thursday, offloading shares worth Rs 925.22 crore, as per exchange data.