Market benchmarks made an emphatic comeback on Friday after two days of losses as robust results by SBI gave fresh impetus to banking and finance stocks, while a declining trend in COVID-19 cases also assuaged investor concerns.
Amid positive global cues and due to broad-based buying across key sectors, the Indian market indices started with gains. At the closing bell, BSE Sensex was at 50,540.48 after a gain of 975.62 points while NSE Nifty 50 was up by 269.25 points.
A strong recovery in the rupee and positive global cues added to the buying momentum, traders said. This was the benchmark’s biggest single-day jump since 30 March this year.
Bombay Stock Exchange (BSE)
BSE Sensex was up by a massive 975.62 points or 1.97 percent and closed the day at 50,540.48. The top gainers were HDFC Bank, SBI, IndusInd Bank, ICICI Bank, and Axis Bank. The top laggards were Dr Reddy and PowerGrid.
Investor wealth surged by Rs 2.41 lakh crore, with the market capitalisation of BSE-listed companies reaching Rs 218.05 lakh crore. During the week, the Sensex soared 1,807.93 points or 3.70 per cent, and the Nifty rallied 497.50 points or 3.38 per cent.
Top BSE Sensex gainers:
HDFC Bank: The company was the top gainer of the day with a hike of 4.48 percent and closed at Rs 1,497.00.
SBI: The shares of the company rose 4.30 percent to close at Rs 401.10.
IndusInd Bank: It witnessed a jump of 4.18 percent to settle the day at Rs 1,016.25.
ICICI Bank: 3.86 percent increase was observed in the share price of the company which closed at Rs 642.45.
Axis Bank: It jumped 3.51 percent to settle the day at Rs 730.70.
Top BSE Sensex Losers:
Dr Reddy: Shares of the company fell by 0.37 percent to close at Rs 5,216.75.
PowerGrid: The shares ended at Rs 228.10 down by 0.35 percent.
National Stock Exchange (NSE)
At the closing bell, NSE Nifty 50 was at 15,175.30 with an increase of 269.25 points or 1.81 percent.
All the Nifty sectoral indices were trading in green with Nifty Bank showing gains of 3.82 percent, followed by Nifty PSU Bank. Nifty Private Bank and Nifty Financial Services gained 3.62 and 3.21, respectively.
Top gainers on NSE Nifty:
SBI: 5.06 percent hike has been observed by the company to close at Rs 404.00.
HDFC Bank: The shares of the company surged 4.78 percent to end at Rs 1,501.30
IndusInd Bank: It closed at Rs 1,014.40 with a jump of 3.99 percent.
ICICI Bank: The company gained 3.91 percent to settle the day at Rs 642.80.
Axis Bank: A jump of 3.72 percent has been witnessed in the shares of the company which closed at Rs 732.15
Top losers on NSE Nifty:
Grasim: Shares of the company fell by 0.38 percent to close at Rs 1,370.00.
PowerGrid: The shares ended at Rs 228.25 down by 0.31 percent.
IOC: A decline of 0.29 percent has been observed in the share which settled at Rs 104.40.
Eicher Motors: 0.26 percent decline has been noted in the share price which settled at Rs 2,524.
Dr Reddy: The company ended the day lower at Rs 5,222.80 after witnessing a fall of 0.26 percent.
“Banks led the charge today buoyed by SBI earnings as bulls went on a rampage with stimulus hopes and transfer of surplus by the RBI to the government kept the street bullish.
“The broader market too witnessed good activity as the curve of daily corona cases displayed a declining trend,” said S Ranganathan, Head of Research at LKP Securities.
The Reserve Bank of India (RBI) on Friday approved the transfer of Rs 99,122 crore as surplus to the central government for the accounting period of nine months ended 31 March.
On the COVID-19 front, the daily rise in coronavirus cases in India remained below 3 lakh for the fifth consecutive day, with 2.59 lakh new cases recorded in a single day, according to the Union Health Ministry data updated on Friday.
Binod Modi, Head-Strategy at Reliance Securities, said, “As second wave of COVID-19 appears to be weakening, assumption of second wave… to peak-out by the end of May or mid of June holds true and adverse impact of second wave should not be felt beyond 1Q FY22.”
All BSE sectoral indices ended with gains, led by bankex, finance, telecom and power which surged up to 3.73 percent.
Global equities followed Wall Street higher as fears of inflation and the US Fed tightening its monetary policy receded.
Elsewhere in Asia, bourses in Tokyo and Hong Kong closed in the green, while Shanghai and Seoul nursed losses.
Stock exchanges in Europe were largely trading in the positive terrain in mid-session deals.
Meanwhile, international oil benchmark Brent crude was trading 0.84 percent higher at $65.66 per barrel.
The rupee strengthened by 29 paise to end at 72.83 against the US dollar amid a weaker American currency in the overseas market. Foreign institutional investors were net buyers in the capital market on Thursday as they purchased shares worth Rs 71.04 crore, as per exchange data.