Mumbai, Feb 23: Broad-based buying across all sectors, coupled with strong gains among metal and pharma names, ensured that the market began March series on a very strong note. Supportive global cues also aided sentiment.
Both Sensex and Nifty ended with gains of over 1 percent. Gains in HDFC twins, Reliance, Vedanta, ITC and Tata Steel, helped indices end higher.
Tracking positive global cues, market began the day on a positive note. But the Street soon extended those gains, with broad-based buying among sectors as well as midcaps.
“The BSE 30 Index bounced back strongly today, even wiping out the losses for the entire week to close in the positive territory. In this week, markets had to deal with weak set of Macroeconomic data as trade deficit widened and this was accompanied by decline in INR against the USD and further firming up of domestic bond yields. While there has been some correction in the market in February, the market may have further downside in light of the firming up of the domestic bond yields, we believe,” Sanjeev Zarbade, Vice-president-PCG Research at Kotak Securities said in a statement.
The Sensex is up 322.65 points or 0.95% at 34142.15, and the Nifty is up 108.30 points or 1.04% at 10491.00. The market breadth is positive as 1894 shares advanced, against a decline of 829 shares, while 208 shares are unchanged.
Among precious metals, gold prices recovered by Rs 130 to Rs 31,480 per 10 grams, halting its three-day losing streak at the bullion market today on buying by local jewellers even as the metal weakened overseas.
Silver reclaimed the Rs 40,000-mark on increased offtake by industrial units and coin makers.
Bullion traders attributed the recovery in gold prices to scattered buying by local jewellers, but a weak trend overseas capped the gains.
In case of stock-specific action, Shares of Federal Bank gained 6 percent in as the bank decided to acquire stake in Equirus Capital.
Shares of Merck, KSB Pumps and ITD Cementation India added 3-5 percent intraday Friday on the back of strong third quarter numbers.
Siemens declined 2 percent lower as global broking houses maintained sell rating on the stock.
Meanwhile, Sun Pharmaceutical Industries added 6 percent even as the company received 3 observations from USFDA for its Halol unit.
Jubilant Life fell over 11 percent after the stock witnessed a block deal. Around 59.8 lakh shares of the company were traded in six blocks on the NSE at the price of Rs 914-940.05 per share.
Avenue Supermarts, the operator of D-Mart, gained around 5 percent intraday after Goldman Sachs raised the target price on the stock. The global research firm has maintained its buy call on the stock and raised target to Rs 1,672 from Rs 1,611. This implicates an upside of 4 percent.
Going forward, experts advise focusing on stock-specific bets.
“This bounce was largely due to the oversold positions and it may extend further in the coming week. However, we feel it’s just a relief rally and sustainability at higher level would be difficult. Nifty has strong hurdle at 10600 and cues are still mixed on local front. Amid all, stocks are offering opportunities on both sides so participants should focus more on stock selection,” Jayant Manglik, President, Religare Broking said in a statement.
Meanwhile, in case of global markets, Asian stocks closed higher as the dollar edged higher after slipping in the last session. Gains in the region were led by South Korea’s Kospi, which bounced back to rise more than 1.5 percent after slipping in the last session.