Axis Bank emerged as the top performer in the Sensex pack, experiencing a 3.07% increase. Reliance Industries also saw significant buying activity, surging 1.75%. On the other hand, Asian Paints, Ultratech Cement, and ITC performed poorly.
The equity benchmark indices, Sensex and Nifty, rebounded over 1% on Friday after a six-session losing streak. This rebound was driven the value buying in auto, IT, financial, and energy stocks. Additionally, the better-than-expected quarterly financial results of corporates further boosted investor sentiments. However, analysts noted that uncertainties surrounding escalating tensions in the Middle East persisted.
During the trading session, the 30-share BSE Sensex rose 634.65 points or 1.01%, closing at 63,782.80 points. The Sensex reached a high of 63,913.13 points and a low of 63,393.37 points. Similarly, the broader Nifty surged 202.45 points or 1.07%, ending at 19,059.70 points.
Vinod Nair, Head of Research at Geojit Financial Services, stated that the domestic market rebounded well compared to the previous day’s sharp corrections. He attributed this recovery to restrained foreign institutional investor (FII) selling and a moderation in currency and global bond yield volatility. However, Nair highlighted that despite the decent Q2 results, the market lacks enthusiasm due to potential earnings downgrades resulting from a slowdown in the world economy, elevated interest rates, and geopolitical risks.
Besides Axis Bank, other gainers in the Sensex pack included HCL Tech, SBI, NTPC, Tata Motors, Nestle India, and Infosys. The heavyweight stock, Reliance Industries, witnessed heavy buying and closed at Rs 2,265.25 per share. The company is set to announce its quarterly financial numbers after market hours.
Maruti Suzuki India reported an impressive 80.3% increase in net profit, reaching Rs 3,716.5 crore in the July-September quarter. This growth was driven better sales, softening commodity prices, cost reduction efforts, and higher non-operating income.
Meanwhile, the BSE midcap gauge gained 1.70%, and the smallcap index rose 1.89%. All the sectoral indices ended in the green, with utility gaining 2.22%, power jumping 2.04%, services at 1.79%, industrial at 1.63%, realty at 1.63%, and IT at 1.36%.
In the last six trading sessions until October 26, the Sensex had declined 3,279.94 points. Asian markets, including Seoul, Shanghai, Tokyo, and Hong Kong, closed with significant gains on Friday. European markets, however, traded on a mixed note, while US equity indices ended in negative territory on Thursday.
The global oil benchmark, Brent crude, rose 2.50% to USD 90.13 per barrel. On Thursday, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,702.53 crore, according to exchange data.