Markets End Three-day Losing Streak, Fin Stocks Lead Gains
Mumbai: India’s benchmark stock indices broke their threeday losing streak Friday ahead of the publication of the exit polls, gaining around 1% each after a protracted decline in global crude prices helped strengthen the rupee against the dollar.
The Sensex climbed 361.12 points, or 1%, to close at 35673.25 and the Nifty ended up 92.55 points, or 0.9%, at 10693.70. The market’s fear gauge, also known as India VIX, ended lower by 3.4% at 18.65.
The focus would be on the US non-farm payrolls data, scheduled to be released Friday evening, and on Tuesday’s outcome of the five state elections. Exit polls on these elections were being broadcast by television stations after trading ended in Mumbai.
“The election results will be announced on Tuesday and those will decide the fate of the Indian currency and equity markets in the short run,” said VK Sharma, head-PCG & Capital Markets Group, HDFC Securities.
On Friday, financial stocks led the gains on the indices, Kotak Mahindra Bank ended as the top gainer on the Sensex, climbing 8.5%. The private lender’s stock ended off the day’s high of about 14% after it denied reports that Warren Buffett’s Berkshire Hathaway is planning to buy a 10% stake in the bank.
Adani Ports, Bajaj Auto, Infosys, Asian Paints, Hero MotoCorp and Maruti Suzuki India ADVANCE & DECLINE HIGHS & LOWS were the other top gainers on the index, up 1.4-2.7%.
Sun Pharmaceutical Industries, Coal India, Yes Bank, NTPC and Tata Steel were the worst performers on the Sensex, with losses of 0.6-2.1%.
Foreign portfolio investors net sold Indian shares worth Rs 817.4 crore, while domestic institutional investors net bought Indian shares worth ₹ 242.56 crore, provisional data showed.
Uncertainty over the outcome of state elections has been one of the reasons for nervousness in the markets this week. These state elections are seen as the curtain raiser to the 2019 national polls. With the markets losing momentum, analysts advised investors to look for fundamentally strong stocks from leading sectors trading above their 50and 200-DMAs.