NEW DELHI: Buoyed by the strong movement in global markets, investors moved in droves to buy equities on Friday shrugging off worries over unexpected rise in unemployment claims in the US and surging Covid-19 cases in India.
Data released by the US showed that jobless claims rose again above 1 million, denting hopes of a swift economic recovery. Meanwhile, India continues to report the highest daily increase in Covid-19 patients in the world.
The 30-share pack Sensex rose 214 points or 0.56 per cent to 38,435. Banks, financials, power and some consumer discretionary names were some of the top contributors to the rally while RIL was the top drag.
Broader NSE Nifty advanced 59 points or 0.53 per cent to 11,372. India VIX, the measure of volatility and fear in the market, plunged 4.45 per cent to 19.70, which signifies traders are expecting relatively lower volatile moves going ahead.
“Indian indices had a strong opening and inspite of volatility held onto some of the gains, supported by positive global cues. Overnight gains in US Tech shares, in spite of underwhelming economic data in the US, helped global markets,” said Vinod Nair, Head of Research at Geojit Financial Services
“Domestically, more hopes arose regarding normalisation of businesses and affected sectors, as the government continued with the “unlock” process,” he added.
Among Nifty stocks, NTPC was the biggest gainer, up 5.09 per cent at Rs 106.25 after the state-owned power giant said it has received the approval of Niti Aayog and Department of Investment and Public Asset Management to enter the renewable energy business.
Power Grid, Asian Paints, HDFC Bank, Hero Moto, Nestle India and Sun Pharma were other top gainers, rising in the range of 2-5 per cent. Zee Entertainment, Hindalco, Bharti Airtel and ONGC were among the top drags.
Top 5 Nifty gainers & losers
Broader market indices continued with their upward momentum, rising for the fifth straight session, however some names in the space saw profit booking. Nifty Smallcap rose over a per cent while Nifty Midcap climbed half a per cent.
“Until there are signs of economic activity and earnings picking up, investors are advised to remain cautious while trading and remain stock specific”
IDBI, Whirlpool of India, BHEL, Strides Pharma, IndiaMart Intermesh and GNFC were among the top gainers from broader market space, rising in the range of 6-10 per cent. Jindal Steel, Future Retail, Ashok Leyland, IRB, CSB Bank and Ashoka Buildcon were top losers from the space.
“Small and midcaps did well this week and we saw a smart bout of profit booking today in this space which is heartening as it speaks about the maturity of the retail investor at a time when we keep hearing about this investing segment being victimised more often than not,” said S Ranganathan, Head of Research at LKP Securities.
IT, media and metal indices on NSE wiped its morning gains and plunged into the red, with Nifty Media falling the most at 1.42 per cent. Nifty PSU Bank was the biggest sectoral gainer, thanks to the jump in shares of Bank of Maharashtra and index heavyweight SBI. The latter got a boost from a CLSA report that said it could rise 59 per cent from current levels.
Nifty Realty, Nifty Private Bank, Nifty Financial Service and Nifty Bank were among other sectoral indices that gained over a per cent each.
Market breadth was tilted in favour of gainers as 1,840 stocks gained while 967 stocks closed in the red. Nearly 230 stocks hit their 52-week highs, many of them from large and midcap space while 50 names hit the 52-week lows, which were largely from microcap space. Nearly 430 stocks hit the upper circuit and about 200 lower circuit.
European markets erased their early gains and were trading with marginal cuts. On the other hand, barring Indonesia, all major Asian markets closed with gains. Stocks in Taiwan, South Korea and Hong Kong were among the biggest gainer, up over a per cent.
Let’s prepare for Monday
- AGR issue: Regular hearing in AGR case by Supreme Court is constantly keeping market participants on the edge, especially those invested in telecom space. Investors will keep tracking the case.
- US-China meet: There has been confusion on meeting between the US and China, with the latter saying there will be one while the former refusing to acknowledge it. Any development during the weekend will be closely tracked.
- Q1 earnings: IRB Infra, LIC Housing Finance, Nocil, Suzlon Energy and Scooter India are among some major names that will come out with their numbers.