 "Sensex, Nifty, stock brokers")
Indian equities staged a pullback rally Friday, snapping their six-day losing streak, as investors indulged in bargain buying.
The benchmark S&P BSE Sensex zoomed 765 points intraday to hit a high of 63,913 on the BSE. The NSE Nifty50, on the other hand, reclaimed the 19,050-mark as it touched a high of 19,076 during the day.
Both the indices advanced 1 per cent each and, eventually, edned at 63,783 levels (up 635 points) and 19,047 (up 190 points).
Stock market highlights: Here's all that happened in the markets today
Stock market highlights: Here's all that happened in the markets today
Meanwhile, in the broader market, the BSE MidCap and SmallCap indices outperformed the frontline peers as they rallied around 1.7 per cent and 1.9 per cent, respectively, on the bourses led by a rally in PSU banks.
The rebound in markets comes after six straight days of sell-off where the benchmark Sensex crashed 3,280 points and the Nifty50 tumbled 954 points.
"Indian equity markets witnessed volatility during past week on the back of elevated US bond yields, geo-political tensions in West Asia, and heavy selling by foreign institutional investors (FIIs). India, however, remains an oasis in the desert with economic activity remaining robust," said Shibani Sircar Kurian, senior executive vice president and head of equity research at Kotak Mahindra Asset Management Company.
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While Nifty valuations (one year forward P/E), Kurian added, remains close to long term averages, valuations for the mid and small cap indices remain above their long term averages.
Here's what triggered a pullback in the markets on Friday, Octobrr 27, 2023:
Global markets
Asian markets closed with noteworthy gains today led by Hong Kong's hang Seng index, which gained 2 per cent. That apart, Japan's Nikkei added 1.3 per cent, Australia's ASX200 added 0.2 per cent, and South Korea's Kospi gained 0.16 per cent.
In Europe, stocks had a mixed open Friday, with earnings and the state of the global economy keeping sentiment on edge.
Germany's DAX was up 0.46 per cent in early deals, while the UK's FTSE added 0.2 per cent. France's CAC was the only loser as it fell 0.42 per cent.
Futures on Wall Street, too, were showing signs of a positive start, after an overnight selling on Thursday, with Nasdaq Futures ruling 1 per cent higher in pre-market deals.
S&P500 and Dow JOnes futures, too, advanced up to 0.57 per cent.
Decline in bond yields
Yields on 10-year Indian government securities eased to 7.341 per cent intraday on Friday, down from Thursday's close of 7.366 per cent. It settled at 7.348 per cent.
Yields across Japan, the UK, France, and Germany also dipped in the range of 30 basis points even as 10-year US Treasuries were hovering at 4.86 per cent.
Buying in heavyweights
Index heavyweights such as Axis Bank, HCL Technologies, State Bank of India (SBI), Tata Motors, Reliance Industries, Infosys, Maruti Suzuki, Larsen and Toubro (L&T), Bajaj Finance, and Bharti Airtel surged between 1 per cent and 3 per cent.
Shares of Maruti Suzuki India (MSIL), for instance, jumped 4 per cent higher on the BSE to hit an all-time high of Rs 10,846.10 in Friday’s intraday trade after the company reported a sharp 80 per cent growth in net profit for the September quarter (Q2FY24). Maruti said it recorded the highest-ever quarterly sale volume, net sales and net profit for the quarter. READ MORE
Those of RIL, meanwhile, wer quoting 2 per cent higher after shareholders approved appointment of Isha, Akash, and Anant Ambani as non-executive directors on the Board. READ MORE
JP Morgan upgrade
JP Morgan, on Friday, upgraded India to 'Overweight' from 'Neutral' and recommended investors to use the near-term correction as an opportunity to add and leverage on a positive historical seasonality to the general election.
Technical levels
After relentless selling in recent days, the Nifty has temporarily paused its decline due to an oversold chart setup. However, the index closed significantly below the critical breakdown level of 19,250 on Friday.
"Thus, as long as it stays below 19,250, the market may continue to be inclined towards selling on any upward movements. On the downside, a resumption of weakness is expected if the index falls below 18,800," said Rupak De, senior technical analyst, LKP Securities.
"Thus, as long as it stays below 19,250, the market may continue to be inclined towards selling on any upward movements. On the downside, a resumption of weakness is expected if the index falls below 18,800," said Rupak De, senior technical analyst, LKP Securities.
