Value buying drives Nifty to record high

Rebound:

• BSE Sensex rose 1,292.92 points or 1.62% to 81,332.72
• During the day, the Sensex rose 1,387.38 points or 1.73% to 81,427.18
• NSE Nifty rose 428.75 points or 1.76% to an all-time high closing price of 24,834.85
• All Sensex stocks except Nestle closed in the green
• Airtel, Adani Ports, Sun Pharma, Tata Steel, HCL Tech, Infosys, JSW Steel and M&M were major gainers
• FIIs on Thursday sold shares worth Rs2,605.49 cr

Mumbai: The benchmark Sensex recovered by 1,293 points while the NSE Nifty shot to a record high on Friday, ending a five-day losing streak that was triggered by heavy value buying at lower levels and a rally in blue chips including Infosys, Airtel and Reliance Industries.

The 30-share BSE Sensex rose 1,292.92 points or 1.62 percent to close at 81,332.72. During the day, it rose 1,387.38 points or 1.73 percent to close at 81,427.18. The NSE Nifty rose 428.75 points or 1.76 percent to close at an all-time closing high of 24,834.85. As many as 47 of the Nifty constituents closed in the green, while three ended lower. Both Sensex and Nifty had been falling since Friday last week. Sensex fell 1,303.66 points or 1.60 percent, while the Nifty fell 394.75 points or 1.59 percent in five consecutive days of losses till Thursday. “Investors are adopting a buy-on-dip strategy, refocusing on quarterly earnings and stock-specific trends. Notably, gains were seen across sectors, with Metals and IT leading the way, with midcaps outperforming,” said Vinod Nair, Head (Research), Geojit Financial Services.

All Sensex stocks, except Nestlé, closed in the green on Friday.

“This rise was fuelled by improved sentiment following robust performance in IT and metal stocks, as well as significant rollovers into the August series. Broader indices also reflected this strength and showed significant gains,” Ajit Mishra, Sr VP (Research), Religare Broking Ltd.

On the broader market, all indices closed higher with the BSE midcap index rising 2.12 percent and the smallcap index rising 1 percent.

“The domestic market witnessed a substantial revival at the beginning of next month, recovering from the recent losses suffered after the Union Budget. This revival was led by positive responses to the better-than-expected US GDP, which bodes well for global demand,” Nair added.

Bharti Airtel was the top gainer, up over 4.51 percent. Adani Ports, Sun Pharma, Tata Steel, HCL Technologies, Infosys, JSW Steel and Mahindra & Mahindra were the other major gainers. Nestle was the lone loser, down 0.07 percent. Telecom rose 3.36 percent, metal (3.19 percent), teck (2.76 percent), auto (2.35 percent), commodities (2.26 percent) and healthcare (2.10 percent). As many as 2,652 stocks rose, while 1,286 fell and 102 remained unchanged on the BSE.

On the weekly front, the BSE benchmark rose 728.07 points or 0.90 per cent and the Nifty climbed 303.95 points or 1.23 per cent. On the Asian markets, Seoul, Shanghai and Hong Kong closed higher while Tokyo ended lower. European markets were also trading in positive territory. US markets closed mostly lower on Thursday. The global oil benchmark Brent crude fell 0.40 per cent to USD 82.04 per barrel. Foreign institutional investors (FIIs) sold shares worth Rs 2,605.49 crore on Thursday, according to exchange data.