Indices surge on global cues, buying support

Despite a sudden sell-off blip following a public attack on the Chief Justice of India (CJI) by four senior colleagues, the key equity indices of the stock markets closed at fresh highs, on Friday, with modest gains. According to market observers, optimism over the ongoing corporate earnings season, along with positive global cues and buying support from oil and gas, banking and capital goods stocks, helped the indices recoup their intra-day losses.

The barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) recovered almost 250 points from its day's low at 34,342.16 points to close the day's trade at a new high of 34,592.39 points -- up 88.90 points or 0.26 per cent -- from its previous session's close. During early morning trade, the Sensex -- which opened at a fresh high of 34,578.99 points -- scaled a fresh intraday high of 34,638.42 points. However, the BSE market breadth remained bearish as 1,584 stocks declined as compared to 1,331 advances. On the National Stock Exchange (NSE), the wider Nifty50 edged higher by 30.05 points or 0.07 per cent to close at 10,681.25 points. The Nifty50 too had opened at a fresh level of 10,682.55 points and touched a new intra-day high of 10,690.25 points.

"The Sensex and Nifty had hit record highs in early trade on the back of positive Asian cues. Expectations of recovery in domestic earnings in Q3FY18 also helped the market sentiments," Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS. "However, selling pressure emerged in afternoon trade after four Supreme Court judges reportedly said working of the apex Court was not in order. Indices later bounced back to close the session with small gains," Jasani added.