Indian equity benchmarks extended their gains for the third straight session on Friday led by strong buying in metals and technology stocks. Domestic indices also gained support from index heavyweight Reliance Industries, other energy and consumer stocks.
Investors focused on a possible slowdown in the pace of rate hikes rather than the US slowdown after data showed the economy shrank for the second quarter in a row.
The Fed raised rates by 75 basis points (bps), but its chairman Jerome Powell dropped guidance on the size of the next rate hike and said that “at some point,” it would be appropriate to slow down.
Back home, the 30-share BSE Sensex today jumped 712 points or 1.25 per cent to end at 57,570, while the broader NSE Nifty rose 229 points or 1.35 per cent to end at 17,158.
Mid- and small-cap stocks ended on a strong note as Nifty Midcap 100 rose 1.42 per cent and small-cap 1.70 per cent.
All 14 sector gauges – compiled by the National Stock Exchange – settled in the green. Sub-indices Nifty Metal, Nifty IT, Nifty Oil & Gas and Nifty Consumer Durables outperformed the NSE platform with gains of 3.86 per cent, 1.71 per cent, 2.18 per cent and 1.75 per cent, respectively.
On the stock-specific front, SBI Life was the top Nifty gainer as the stock rose 8.61 per cent to Rs 1,294 after the private sector life insurer posted an 18 per cent rise in net income to Rs 263 crore in April-June. quarter. Tata Steel, Hindalco, Sun Pharma and Coal India were also gainers.
Overall market breadth remained positive as 2,101 stocks declined, while 1,225 declined on the BSE.
Tata Steel, Sun Pharma, Bajaj Finserv, IndusInd Bank, Asian Paints, Infosys, Reliance Industries, Bajaj Finance, Wipro, HDFC, NTPC and Bharti Airtel were the top gainers on the 30-share BSE index with their respective stocks. as 7.27 percent.
Besides, shares of Life Insurance Corporation of India (LIC), the country’s largest insurer and largest domestic financial investor, closed 0.44 per cent higher at Rs 677.85.
Conversely, Dr Reddy’s, Kotak Mahindra Bank, SBI, ITC and Axis Bank remained in the red.