Sensex, Nifty end choppy session with gains; Grasim rises 6%; banking stocks shine

Domestic equity markets snapped the two-day losing streak and managed to post mild gains on Friday after a choppy trading session. Headline indices recouped from early cuts but broader markets witnessed profit booking on the back of elevated valuations. Rate cut and inflation cues from the global markets will guide the sentiments at Dalal Street.
 
The 30-share pack BSE Sensex rose 167.06 points, or 0.23 per cent to close at 71,595.49. NSE's Nifty50 jumped 64.55 points, or 0.30 per cent, to end the session at 21,782.50. Broader markets underperformed the headline peers as the BSE midcap index ended 0.8 per cent down, while the smallcap index shed 1.35 per cent. India VIX dropped 2.4 per cent to 15.45-level.

The Indian market struggled for direction on Friday despite the US market inching to a record high overnight. The morning session observed wild swings in the Nifty 50 index, with price action hovering in the range of 21780 to 21630 levels, said Avdhut Bagkar Technical and Derivatives Analyst at StoxBox, followed by a recovery in the second half.

"Derivatives data revealed the highest concentration in 22,000 strike prices, with 21,900 CE and 21,600 PE experiencing resilient volatility. The index has managed to hold ground on a closing basis over the support of 20-simple (daily) moving average (DMA) placed at 21,698, implying a positive sentiment," he said.

On a sectoral front, the Nifty private bank index rose more than a per cent, while the Nifty healthcare index also gained on the similar line. The Nifty financial services index added 0.70 per cent for the day. Among the laggards, the Nifty metal index tanked over 1.5 per cent, while the Nifty oil & gas index dropped about 1.4 per cent for the day.

In the NIfty50 pack, Grasim Industries led the gainers and surged more than 5.9 per cent, while State Bank of India extended its gains by another 3.7 per cent. Apollo Hospital Enterprises ended 3.25 per cent higher following its Q3 results. Sun Pharma ended 2.8 per cent higher for the day.

On the downside, Mahindra & Mahindra dropped about 2.5 per cent, while Bharti Airtel was down 2 per cent after cabinet okayed spectrum auction base price. NTPC and ONGC declined 1.85 per cent each, while Tata Steel ended 1.65 per cent down for the day.

After a volatile session, the market ended on a positive note, aided by a rebound in banking stocks after yesterday’s sell-off, said Vinod Nair, Head of Research, Geojit Financial Services. "Mid- and small-cap indices bled the most as the sentiment on the broader indices remains vigilant due to their rich valuation. Caution prevailed in the market ahead of inflation data next week."

A total of 3,932 shares were traded on BSE on Friday, of which 2,515 settled with cuts. 1,321 stocks ended the session with cuts while 96 shares remained unchanged. During the day, 300 shares hit their upper circuit, whereas 348 shares tested the lower circuit levels for the day.

After displaying volatility in intra-day trades, markets managed to end in positive territory after two-session losses on the back of renewed optimism in banking stocks. However, selling in IT, telecom, metals and oil & gas stocks limited the market upside, said Prashanth Tapse, Senior VP (Research), Mehta Equities.

"There is lack of conviction due to pessimism over delay in rate cuts by the US Fed as the persisting global tensions and its likely impact on the inflation going ahead is holding back central banks from initiating rate cuts," he said.

In the broader markets, AstraZeneca Pharma tanked more than 13 per cent, while OnMobile Global, IKIO Lighting and MSTC dropped 11 per cent after muted Q3 earnings. Gujarat Mineral Development Corporation and Surya Roshni tanked 10 per cent each for the day.

Among the gainers, Apollo Pipes jumped more than 16 per cent, while SMS Pharmaceuticals surged about 12 per cent each. Prism Johnson settled 8 per cent higher, while Swan Energy, Schneider Electric Infrastructure, Birla Corporation and Sandhar Technologies gained 7 per cent each. 

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