Markets extend gains for 2nd session on fresh foreign fund inflows; IT stocks shine

PTI

Mumbai, January 5

Benchmark stock indices Sensex and Nifty closed higher for a second straight day on Friday, following gains in IT, tech and capital goods shares amid fresh foreign capital inflows.

After slipping briefly during the late afternoon trade, the 30-share BSE Sensex made a quick recovery and jumped 178.58 points or 0.25 per cent to settle at 72,026.15. During the day, it soared 308.91 points or 0.42 per cent to 72,156.48.

The Nifty climbed 52.20 points or 0.24 per cent to 21,710.80.

On a weekly basis, the BSE benchmark declined 214.11 points or 0.29 per cent, and the Nifty dipped 20.6 points or 0.09 per cent.

“Markets traded volatile and ended marginally higher amid mixed cues. After the initial uptick, the Nifty drifted gradually lower and oscillated in a range till the end.

“Meanwhile, a mixed trend continued on the sectoral front wherein recovery in IT majors and follow-up buying in select heavyweights kept the traders occupied. The broader indices managed to edge higher for yet another session wherein smallcap gained over half a per cent,” Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, said.

Among the Sensex firms, Larsen & Toubro, Tata Consultancy Services, Infosys, HCL Technologies, Hindustan Unilever, Axis Bank, ICICI Bank and Wipro were the major gainers.

Nestle India, Asian Paints, JSW Steel, Kotak Mahindra Bank and HDFC Bank were among the losers.

In the broader market, the BSE smallcap gauge climbed 0.61 per cent, and the midcap index rose 0.19 per cent.

Among the indices, IT jumped 1.29 per cent, capital goods (1.27 per cent), teck 1.03 per cent, industrials (0.97 per cent), telecommunication (0.59 per cent) and consumer discretionary (0.35 per cent).

Commodities, consumer durables and metal were the laggards.

“Investors are also staying cautious ahead of eurozone inflation data today. On the domestic front, the market is moving towards the results season, and we expect the exuberance of the broader index may be tested if the December quarter earnings do not justify the valuation,” said Vinod Nair, Head of Research, Geojit Financial Services.

The services sector growth in India rose to a three-month high in December, supported by favourable economic conditions and positive demand trends, a monthly survey said on Friday.

The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 56.9 in November to 59 in December, highlighting a sharp increase in output that was the most pronounced since September.

In Asian markets, Tokyo settled in the positive territory while Seoul, Shanghai and Hong Kong ended lower.

European markets were trading with losses. The US markets ended mostly lower on Thursday.

Meanwhile, global oil benchmark Brent crude climbed 0.94 per cent to USD 78.32 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,513.41 crore on Thursday, according to exchange data.

On Thursday, the BSE benchmark rose 490.97 points or 0.69 per cent to settle at 71,847.57, and the Nifty surged 141.25 points or 0.66 per cent to 21,658.60.

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