Benchmark equity indices Sensex and Nifty closed higher for the third straight session on Friday, following gains in index majors L&T, ITC and Maruti and a record rally in the US markets after the Federal Reserve indicated three rate cuts this year.
However, a massive sell-off in IT and tech stocks kept indices under pressure and restricted the rise after Accenture lowered its revenue forecast for the sector for fiscal 2023-24, traders said.
After falling in early trade, markets staged a smart recovery. The 30-share BSE Sensex climbed 190.75 points or 0.26 per cent to settle at 72,831.94. However, a sharp correction in IT and tech stocks limited the rise. During the day, it jumped 474.43 points or 0.65 per cent to 73,115.62.
The NSE Nifty advanced 84.80 points or 0.39 per cent to 22,096.75.
On a weekly basis, the BSE benchmark climbed 188.51 points or 0.25 per cent, and the Nifty went up by 73.4 points or 0.33 per cent.
“The domestic market swiftly rebounded from an initial downturn and maintained a positive trajectory throughout the day, buoyed by favourable global cues driven by dovish comments from the BoE and buying activity at lower levels in the wake of a recent sell-off.
“Additionally, the retreat of crude oil prices from recent highs contributed to the positive sentiment. While most sectors experienced gains, the IT remained in the red due to subdued guidance from Accenture, a major global IT player,” said Vinod Nair, Head of Research, Geojit Financial Services.
From the Sensex basket, Sun Pharma, Maruti, IndusInd Bank, Titan, ITC, Tata Motors, Larsen & Toubro and JSW Steel were the major gainers.
On the other hand, Infosys, Wipro, HCL Technologies, Tata Consultancy Services, Tech Mahindra and Bajaj Finserv were among the laggards.
In the broader market, the BSE smallcap gauge jumped 1.06 per cent, and the midcap index climbed 0.38 per cent.
Among the indices, telecommunication jumped 2.28 per cent, consumer discretionary rallied 1.20 per cent, commodities (1.11 per cent), healthcare (1.17 per cent) and industrials (1.17 per cent).
IT declined by 2 per cent, and teck fell by 1.47 per cent.
Accenture on Tuesday lowered its revenue forecast for fiscal year 2024 due to global uncertainty and weak client spending on consulting services. It now sees full-year revenue growth to be between 1-3 per cent, down from the earlier projection of 2-5 per cent.
“Asian stocks were mixed on Friday and European stocks reacted from record highs but were still on path for a ninth straight week of gains, the longest winning streak since 2012, as investors turned more confident in the economy and looked forward to upcoming interest-rate cuts. A series of central bank meetings during the week indicated that a turn towards looser policy is on track,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
In Asian markets, Seoul, Shanghai and Hong Kong settled lower, while Tokyo ended in the positive territory.
European markets were trading on a mixed note. Wall Street tapped fresh record peaks on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,826.97 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude dipped 0.22 per cent to USD 85.59 a barrel.
“Markets traded volatile but managed to end higher, tracking favourable global cues. Participants are taking comfort from the favourable global cues,” Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, said.
Equity markets will remain closed on Monday for Holi.
The BSE benchmark jumped 539.50 points or 0.75 per cent to close at 72,641.19 on Thursday. The NSE Nifty climbed 172.85 points or 0.79 per cent to 22,011.95.
