The Indian benchmark indices, BSE Sensex and Nifty50 both ended in green on Friday, beating the initial volatility. The S&P BSE Sensex was up 176 points, or 0.31 per cent at 56,124.72 while the Nifty50 was up 68 points, 0.41 per cent at 16,705.20. The 30-share BSE Sensex touched a high of 56,188.23 and a low of 55,675.87 to finally settle at 56,124.72 for the first time. India’s volatility gauge also cooled off and was down 1 per cent from 13.54 to 13.34 level. The top gainers on Nifty50 turned out to be Hindalco, Ultra Cement, and SBI Life. Dr Reddy’s. On the flip side, Infosys, IndusInd Bank, Tata Consumers, Mahindra and Mahindra and Nestle India were among the laggards on Friday. On the other hand on BSE, Bombay Dyeing, Sudarshan Chemicals, Thirumalai Chemicals were the gainers and Indo Count Industries, Swan Energy, and Great Eastern Shipping were the losers.
“Indian benchmark indices remained in positive territory even as global markets traded mixed as investors awaited announcements from the Jackson Hole Economic Symposium. Mid and small-cap stocks continued their outperformance while recovery in the Metal and Pharma sectors guided them to be the sectoral leaders. Globally, markets are awaiting comments from the Fed chair on the US economy and clarity on its future policy changes," Vinod Nair, head of research at Geojit Financial Services said.
The BSE smallcap closed with the gain of 0.93 per cent and midcap was up by 1.04 per cent. However, BSE Captial Goods index emerged as the top gainer. On NSE, apart from Nifty Bank, every other indices ended in the green. Nifty Bank was down 0.03 per cent.
“Domestic equities bounced back amid mixed cues from global equities with Nifty recording fresh all-time highs. A sharp rebound in metals and pharma stocks and sustained recovery in IT supported benchmark indices. Notably, most key sectoral indices traded in green today ahead of Federal Reserve Chairman’s crucial speech today in the Jackson Hole Symposium tonight. Strong buying was visible in midcap and smallcap stocks today after sharp sell-off in recent period. For the week, benchmark Nifty recovered over 1.5%, while investors’ wealth increased significantly over Rs5.5 trillion during the week, which is quite impressive. UltraTech Cement, Hindalco, SBI Life and L&T were among top Nifty gainers, while IndusInd Bank, Infosys, M&M and Nestle were laggards,” Binod Modi, head- strategy at Reliance Securities said.
Now all eyes will be on Powell’s speech at Jackson Hole Symposium on Friday. Any hint regarding tapering of the stimulus from the economy will impact the markets across the world.
“Markets around the globe will closely track the Jackson Hole symposium which will be held later this evening and the Fed Chairman’s speech is expected to cover bond purchase tapering plan and US economic outlook. On the domestic front, broader markets outperformed the larger basket and all sectors closed higher with metals, pharma and capital goods. Sudarshan Chemicals gain on imposition of anti dumping duty on natural mica based pearl industrial pigments, ICICI Lombard gains over 6 per cent on redemption of debentures of Rs 425 crores. On technical front, 16,500 and 16,750 are immediate support and resistance in Nifty 50," Mohit Nigam, head - PMS, Hem Securities said.
In early trade on Friday, Indian markets opened on a cautious note, taking mixed cues from the Asian and the US equity market. The benchmark BSE Sensex was down 35.14 points, or 0.06 per cent at 55,913.96 and Nifty 50 was also down 23.70 points, or 0.14 per cent at 16,613.20 points.
On Friday, Nifty futures on the Singaporean Stock Exchange was trading up 22.75 points, or 0.14 per cent at 16,660 signaling a positive start for the Indian markets. At 7.18 IST, bourses in Asia, Hong Kong’s benchmark HengSeng index was trading down 66.82 points, 0.27 per cent at 25,335. Tokyo’s benchmark Nikkie 225 was down 126.99 points, 0.45 per cent at 27,618, South Korea’s Kospi index was trading up 2.98 points, and 0.10 per cent at 3132.21, the Shanghai Composite shed 0.21 per cent to 3,494.42 giving a mix cue to Indian stock market.