Markets snap three-day losing streak, up nearly 1%
MUMBAI: Markets snapped their three-day downward spiral to finish with smart gains on Friday as banking, finance and energy stocks saw robust buying amid supportive global cues.
The 30-share BSE Sensex ended 411.38 points, or 1%, higher at 41,575.14. It hit an intra-day high of 41,611.27 points.
Similarly, the broader NSE Nifty closed 119.25 points, or 0.98%, up at 12,245.80.
During the holiday-shortened week, Sensex declined 106.4 points or 0.25%, while Nifty slipped 26 points or 0.21%.
According to traders, banking stocks rallied ahead of finance minister Nirmala Sitharaman’s meeting with heads of public sector banks on Saturday to review financial performance of the lenders and their business growth.
The meeting is expected to take up issues like non-performing asset recovery through both National Company Law Tribunal (NCLT) and NON-NCLT means, take stock of the banking sector and push loan growth, people aware of the development said.
Axis Bank was the top gainer in the Sensex pack, climbing 3.33%, followed by Powergrid, State Bank of India, Bharti Airtel, ICICI Bank, Reliance Industries and Maruti Suzuki India.
On the other hand, Kotak Bank, Ultratech Cement, Titan and Tata Consultancy Services fell up to 0.42%.
“State-run banks helped market to trade higher after consecutive days of weakness. Another announcement of bond sale next week from the central bank lifted the financial stocks higher while positive sentiments in global markets on easing trade concerns fuelled a broad-based rally.
“Investors to stay focused on continuity of government policies and given liquidity is solid, momentum is expected to shift from premium stocks to value stocks,” said Vinod Nair, head of research at Geojit Financial Services.
THE SENSEX ENDED 411.38 POINTS HIGHER AT 41,575.14. IT HIT AN INTRA-DAY HIGH OF 41,611.27. THE NSE NIFTY CLOSED 119.25 POINTS UP AT 12,245.80
BSE energy, realty, oil and gas, bankex, finance, auto and power indices rallied up to 1.74%, while consumer durables ended in the red.
Broader BSE Midcap and Smallcap indices advanced up to 0.87%.
Global equities soared on expectations that the “phase one” trade deal between the US and China will be finalized next month.
Bourses in Hong Kong and Seoul ended higher, while Shanghai and Tokyo slipped in the red.
Stock exchanges in Europe started on a positive note.
On the currency front, the rupee depreciated by 4 paise to close at a fresh three-week low of 71.35 against the US dollar on Friday, continuing its losing streak for the sixth day in a row amid crude oil prices hitting threemonth high levels.
Forex traders said the USD/ INR spot has been trading in a tight range amid lack of cues.
The rupee opened higher at 71.26 and touched a high of 71.19 in morning trade. Later, it lost ground and fell to a low of 71.40 before closing at 71.35, the lowest level since December 4. On a weekly basis, the rupee depreciated by 19 paise.
Crude oil prices rose to threemonth high levels on positive US and Chinese economic data. Brent futures gained 0.22% to trade at $68.07 per barrel while the West Texas Intermediate was up 24 cents, or 0.4%, at $61.92 a barrel.
“The USD/INR spot has been trading in a tight range of 71-71.40 amid holiday season, and we expect thin and lackluster movement to continue even next week,” said Rahul Gupta, head of research, currency, Emkay Global Financial Services. Gupta further said that “the positive sentiments regarding Us-china Phase-one trade deal will go on until there is any contradictory news from the US. 71 will continue to act as a strong support, while 71.40 will be a strong resistance.”