File photo of the Bombay Stock Exchange  | Photo Credit: FRANCIS MASCARENHAS

The Indian benchmark indices ended higher on Friday, breaking a three-day losing streak, as strong buying in banking and financial stocks offset losses in the IT sector. The BSE Sensex closed 218.14 points or 0.27 per cent higher at 81,224.75, while the NSE Nifty 50 gained 104.20 points or 0.42 per cent to end at 24,854.05.

Banking stocks led the rally, with the Nifty Bank index surging 1.57 per cent and Nifty Financial Services climbing 1.50 per cent. Axis Bank emerged as the top gainer on NSE, soaring 5.75 per cent, followed by Wipro (3.59 per cent), Eicher Motors (2.98 per cent), ICICI Bank (2.90 per cent), and Shriram Finance (2.80 per cent).

The IT sector faced significant pressure after sector heavyweight Infosys dropped 4.22 per cent, leading the losers’ pack. Other major decliners included Britannia (-1.98 per cent), Asian Paints (-1.87 per cent), Nestle India (-1.21 per cent), and Tech Mahindra (-0.82 per cent).

“Markets reversed the three-day fall as investors resorted to value buying in banking, metals and realty stocks, which has seen a sharp downfall in recent sessions,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Axis Bank topped the gainers among Sensex stocks, surging 5.57 per cent to ₹1,195.25, followed by ICICI Bank (+2.49 per cent) and Tata Motors (+2.06 per cent). Tata Steel and NTPC also gained 1.94 per cent and 1.90 per cent, respectively. On the losing side, Infosys dropped significantly by 4.60 per cent, while Asian Paints declined by 2.20 per cent. Nestle India, Hindustan Unilever, and HCL Tech saw smaller losses of 1.20 per cent, 0.78 per cent, and 0.71 per cent, respectively.

The market was resilient despite opening lower, with the Nifty touching the day’s low of 24,567, before staging a recovery. “The initial set of results from private banks were positive, building an expectation that the upcoming set of financial results in the weekend would also be optimistic,” said Vinod Nair, Head of Research at Geojit Financial Services.

The market breadth remained slightly negative with 1,993 stocks declining, against 1,942 advances. The session saw 213 stocks hitting a 52-week high, while 52 touched their 52-week lows. Additionally, 319 stocks hit the upper circuit, compared to 237 hitting the lower circuit.

Ajit Mishra, SVP Research at Religare Broking Ltd, cautioned investors about over-analysing the single-day rebound, suggesting to “wait for a decisive close above 25,150 in Nifty for any signs of a sustained recovery.”

The broader markets showed a mixed performance, with Nifty Next 50 gaining 0.38 per cent and Nifty Midcap Select rising 0.32 per cent. Technical analysts remain cautious about the market outlook. “As long as Nifty holds above the 24,700 mark, there is no major sense of panic as of now,” said Tejas Shah from JM Financial & BlinkX.

On the global front, Asian markets traded mostly higher after China’s central bank announced plans to support the stock market through share repurchases. European markets remained mixed, as investors assessed underwhelming earnings updates and retail sales data.

“Nifty could face resistance from 25,128 in the near term, while 24,568 could provide a support,” said Deepak Jasani, Head of Retail Research at HDFC Securities, highlighting the technical outlook for the coming sessions.

Published on October 18, 2024