Mumbai: Indian stock market benchmarks Sensex and Nifty recovered from early losses to close higher on Friday as strong trends showing the NDA heading toward a landslide win in the Bihar elections boosted investor sentiment. Analysts say the NDA’s Bihar victory improved market confidence, lifting equity indices into positive territory by the end of the session.
As the ballots for Bihar’s Assembly election continue to be counted, the major indices remain erratic throughout the session.
The Sensex closed at 84,562.78, up 84.11 points, or 0.10 percent. In anticipation of the Bihar election results, the share index began the session at 84,060.14, down more than 400 points from the previous day’s finish of 84,478.67. Nonetheless, the index closed higher after rising more than 550 points from the day’s low.
The Nifty finished at 25,910.05, up 30.90 points, or 0.12 percent.
“Indian markets today witnessed a roller-coaster session with the benchmark index Nifty showing sharp two-sided moves. In the first half, Nifty surged and tested the crucial 26,000 level before facing resistance and slipping lower later in the day,” Ashika Institutional Equities said in its note.
Investor caution ahead of the Bihar election results, which are of great political significance, kept volatility high.
Tata Motors, Eternal, Axis Bank, BEL, Trent, SBI, Sun Pharma, Bajaj Finance, Adani Airports, Hindustan Unilever, Asian Paints, ITC and NTPC were the top gainers from the Sensex basket. Infosys, Tata Steel, Tata Motors PV, ICICI Bank, Maruti Suzuki and Tech Mahindra ended the session lower.
Sectoral indices saw a mixed response, with purchases in FMCG, banking, and finance stocks and sales in the IT and automotive sectors. Nifty Fin Services increased 95 points, or 0.35 percent, Nifty Bank increased 135 points, or 0.23 percent, and Nifty FMCG closed 317 points, or 0.57 percent, higher. Nifty Auto dropped 143 points, or 0.52 percent, and Nifty IT dropped 378 points, or 1.03 percent.
The Nifty Midcap 100 closed flat, the Nifty Small Cap 100 increased 68 points, or 0.38 percent, and the Nifty 100 ended the session a little higher as the broader market followed suit.
While the dollar index stayed steady at $99.20, the rupee traded in a small range around 88.70, providing few directional indicators.
“With no major U.S. data releases due to the recent shutdown, the market stayed largely dependent on flows, where mixed FII activity and consistent DII buying kept the rupee in a confined band. Crude prices have begun to rebound, and if WTI sustains above $60, it may add fresh pressure on the rupee in the coming sessions. Overall, the rupee is expected to remain range-bound with levels seen between 88.45–88.95,” said Jateen Trivedi of LKP Securities.
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Caption: Mumbai: People walk past a screen showing the stock market going up outside the BSE building on Dalal Street. (File Photo: Nitin Lawate/IANS)
–IANS
