Indian equity benchmarks rose sharply and returned to positive territory on Friday after recording a decline in the previous session. The domestic indices surged today, led by gains in state-run banks, metals, financials and energy stocks. The 30-share BSE Sensex pack jumped 900 points or 1.53 per cent to close at 59,809; while the broader NSE Nifty index moved 272 points or 1.57 per cent higher to settle at 17,594. Mid and smallcap shares finished on a strong note, with the Nifty Midcap 100 up 0.69 per cent and Nifty Smallcap 100 climbing 0.81 per cent. Fear index India VIX dived 6.09 per cent to 12.18. Asian stocks too settled with modest gains today.
A strong and continued recovery in Adani Group stocks helped investors to look beyond the interest rate hike fears. Foreign investors turning into buyers after a six-session halt also buoyed sentiments.
“A nearly $2 billion investment in Adani stocks by US investment firm GQG Partners helped to lift the sentiment and turn foreign investors back into the buying mode after a six-session hiatus,” said Ameya Ranadive, CMT, CFTe, Equity Research Analyst at Choice Broking.
Buying interest in select index heavyweights such as Reliance Industries, HDFC twins (HDFC and HDFC Bank), Larsen and Toubro (L&T) and Infosys also pulled the indices higher.
“PSU banks led the sectoral rally as reports of foreign investments in Adani stocks helped the sector in recouping the dampened sentiments. The sentiment was further lightened as FIIs turned in strong buyers. Positive global sentiments also played a vital role in uplifting the market, as a Fed official commented on a favourable level of a rate hike in the next meeting,” said Vinod Nair, Head of Research at Geojit Financial Services.
Foreign institutional investors (FIIs) purchased Rs 12,770.81 crore worth of equities on a net basis in yesterday, while domestic investors bought about Rs 2,128.80 crore worth of shares, as per provisional NSE data.
All 15 sectoral indices on NSE settled in the green. Nifty PSU Bank, Nifty Metal, Nifty Financial Services and Nifty Oil & Gas outperformed the Nifty index by rising 5.40 per cent, 3.55 per cent, 1.77 per cent and 1.33 per cent, respectively.
All 10 listed Adani stocks continued to rise in sync for the third straight session. Adani Enterprises soared 16.97 per cent, while Adani Ports gained 9.81 per cent. Adani Transmission, Adani Green Energy and Adani Total Gas finished 5 per cent higher, respectively.
Also, Finolex Cables zoomed 9.90 per cent, while Indigo Paints surged 8.57 per cent. PSU banks such as Union Bank, UCO Bank, Punjab & Sind Bank, Indian Bank, Bank of Maharashtra, Indian Overseas Bank, Bank of India and Bank of Baroda rose up to 8.34 per cent. State Bank of India (SBI) settled 5.11 per cent higher.
On the flip side, Tube Investments of India fell 3.75 per cent today. Yes Bank, Crisil, Shree Cement, Zensar Technologies and Tech Mahindra slipped up to 3.60 per cent.
Out of a total of 3,639 stocks that traded during the day, 2,182 settled with gains while 1,333 others ended lower. The rest 124 stocks stayed unchanged.
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