The benchmark indices on Friday rose after the previous session’s plunge, as investors looked for value buying opportunities at lower levels.
Sensex and Nifty 50 rebounded into positive territory, with the Sensex closing 260 points, or 0.36%, higher at 72,664.47, and the Nifty 50 finishing 98 points, or 0.44%, up at 22,055.20.
Buying was seen in shares of select heavyweights, including ITC, Reliance Industries, Bharti Airtel, NTPC, Hindustan Unilever and Power Grid, amid positive global cues.
Sensex and the Nifty 50 ended about 2% lower each, while the BSE Midcap and Smallcap indices fell 3% and 4%, respectively.
Overall market capitalisation of the firms listed on the BSE dropped to nearly Rs 396.6 lakh crore on Friday, May 10, from nearly Rs 406.2 lakh crore last week.
On Nifty 50, the top gainers were BPCL (4.50%), Power Grid (2.45%) and NTPC (2.41%). On the flip side were the shares of TCS (1.65%), Cipla (1.38%) and LTIMindtree (1.27%).
Sectoral indices ended higher on the NSE. Nifty Metal, FMCG, Oil & Gas, Consumer Durables and Healthcare indices rose by over a per cent each.
The Nifty Bank index fell 0.14%, while the Nifty PSU Bank index declined 0.29%. The Nifty Private Bank index rose 0.18%.
Metal stocks resumed their upward momentum with the majority of Nifty Metal constituents trading positively.
This surge was fueled by increasing optimism surrounding potential US Fed rate cuts and positive indicators of a strengthening Chinese economy, resulting in a spike in base metal prices.
Gold prices strengthened and are on track for their best week since early April. Spot gold gained 1.1% to $2,372.16 per ounce by 0925 GMT, hitting its highest in more than two weeks. Prices have risen over 3% so far in the week.
Amid the current situation, experts predict Railways, defense, PSU banks, FMCG, and automobile sectors to gain.
Shares of Punjab National Bank gained 1.8% to Rs 124.3 apiece after profit more-than-doubled year-on-year (YoY) to Rs 3,010 crore in January-March (Q4FY24) quarter.
So far this year, shares of PNB surged over 29%, outperforming 1% rise in the benchmark Nifty 50 index.
Shares of Cipla fell nearly 3% in trade after the company reported lower-than-expected revenue and margin numbers for the March quarter of FY24.
Indian stock market has moved in contrast to its major global peers, with domestic factors outweighing global cues.
The sharp selling by foreign portfolio investors (FPIs) ahead of the general election outcome has been the primary reason behind the domestic market’s decline.
A close watch will be on the market next week to the forthcoming inflation data.