Market sentiments up as crude prices slide down
Sensex and Nifty both close the day with gains of over two per cent
Mumbai: Dalal Street finally outsmarted global markets with both the benchmark Sensex and the Nifty closing the day with gains of over 2 per cent.
At the close of market hours, the Sensex ended up 732.43 points or 2.15 per cent at 34733.58, while the Nifty closed higher by 237.80 points or 2.32 per cent at 10472.50. The market breadth was positive as 2,024 shares advanced, against a decline of 630 shares.
Maruti Suzuki, Mahindra & Mahindra, and Eicher Motors are the top gainers. TCS and HCL Technologies were the big losers.
Barring the IT index, which lost nearly 1 per cent in trade on Friday, all other sectoral indices closed the day with sharp gains.
“Markets in India traded on a firm note on Friday after witnessing intense selling pressure over the last few days. Domestic market sentiment was upbeat backed by a recovery in global stocks. Additionally, traders took to buying stocks at lower levels as well, hoping for a short-term pullback. Most Asian stocks rose, holding steady after a nine-day losing streak,” said Abhijeet Dey, Senior Fund Manager-equities, BNP Paribas Mutual Fund
While Dow Jones Industrial average was down 5.27 per cent, with one day to go and Shanghai was down 7.60 per cent this week, Nifty did well closing a turbulent week 1.51per cent higher.
Bank Nifty, bitten down since the NPA mess emerged again, did even better, managing to outperform with a 3.9 per cent gain for the week.
“The bounce back of Nifty from Thursday’s low of 10,139 was largely accomplished on the back of sliding crude oil prices and a rising Rupee,” said VK Sharma of HDFC Securities.
Brent Crude oil has fallen 7 per cent from its recent highs near 86. “The jigsaw puzzle for our markets is falling into place. The lingering issue for the markets will be how the US reacts to India’s by buying the Russian missile system,” Sharma said.
Picture for representation