Auto shares drive Sensex recovery, 2nd day in a row
The equity benchmarks were on the mend for the second straight session on Friday, riding on a rally in auto counters amid a modest recovery in the rupee. The Sensex spurted 147.01 points to finish at 38,389.82, while the broader Nifty climbed 52.20 points to 11,589.10. On a weekly basis, both the Sensex and Nifty halted their six-week winning streak by falling 255.25 points or 0.66 per cent, and 91.40 points or 0.78 per cent, respectively.
Automobile stocks zoomed, following the government’s decision to exempt electric vehicles (EVs) and automobiles run on alternative fuels from permit requirements.
Hero MotoCorp and Bajaj Auto were the top two gainers in the Sensex pack. The rupee was trading higher by 29 paise at 71.70 (intra-day) against the dollar. The domestic currency had hit a fresh life-time low of 72.11 before settling at 71.99 on Thursday. After a sharp fall of about 880 points over the last few sessions on a depreciating rupee and surging crude oil prices, the Sensex has rebounded in the past two days on value-buying.
Meanwhile, domestic institutional investors (DIIs) continued their buying activity on the bourses. They bought shares worth a net ~6.12 billion, while foreign portfolio investors (FPIs) sold equities worth ~4.55 billion on Thursday, provisional data showed.
“Market reversed from the day’s low as gains in the rupee and a gradual drop in oil price supported the sentiment. Auto stocks led from the front, while outperformance in mid-cap indices gave some relief to investors after recent correction. On the valuation front, the market remains expensive, while an uptick in growth and prospects of earnings are protecting the downside,” said Vinod Nair, Head of Research, Geojit Financial Services.