MUMBAI: Benchmark equity indices extended gains to the second straight session on Friday, mirroring optimism in world equities, as easing tensions between the US-Iran relieved investors.
A decline in crude oil prices also provided respite to investors. Oil prices dipped as the threat of war in the Middle East receded and investors switched their attention to rising US crude oil and product inventories, Reuters reported. Brent crude fell 4 cents to $65.33, and was heading for its first decline in six weeks, down nearly 5 per cent.
The focus will now shift to the December quarter earnings season, which kicks off with Infosys earnings later in the day.
BSE barometer Sensex rose 0.36 per cent or 147 points to 41,600, while its NSE counterpart Nifty climbed 0.33 per cent or 40.90 points to 12,257.
Earlier in the day, Nifty rose as much as 0.78 per cent or 95.30 points to a record high of 12,311.20. Meanwhile, Sensex gained as much as 0.77 per cent or 323 points. Financials, IT major Infosys and FMCG stocks contributed the most to the gains on Sensex.
The market breadth was slightly positive as advancing shares beat the declining ones.
Markets at a glance:
In the 30-pack Sensex, 22 stocks ended in the green and eight in the red. Software services exporter Infosys climbed 1.47 per cent, and was the top Sensex gainer ahead of its third-quarter earnings announcement.
On the other hand, ICICI Bank, IndusInd Bank, Titan and Bharti Airtel were among the top losers, falling as much as 1.11 per cent.
YES Bank dropped 5.29 per cent after independent director Uttam Prakash Agarwal resigned citing deteriorating corporate governance standards and compliance failure at the lender. Also on Friday, Morgan Stanley slashed the target price for YES Bank to Rs 25, saying it remains underweight on the lender given the delay in capital raising and elevated asset quality stress.
Shares of Edelweiss Financial Services tumbled 9.56 per cent, after ET NOW reported that chairman Rashesh Shah was summoned by the Enforcement Directorate in connection with a Rs 2,000 crore forex scam.
The broader market performed in line with the benchmark. BSE Midcap and BSE smallcap rose 0.40 per cent and 0.42 per cent, respectively.
In the sectoral space, only BSE Telecom index closed in the red. Meanwhile, BSE Realty index led the sectoral gainers, with a 1.86 per cent advance.
Analysts’ views:
“While the tensions in the Mideast appear to have cooled off for the time being, there was some flight to safety which is evidenced from the rise in gold prices. From here on, the markets would focus on the upcoming Budget and also the RBI bi-monthly policy at the start of February. The market would also take cues from the Q3FY20 earnings season with key focus being on management commentary on business outlook.
– Shibani Kurian, Sr. Vice President, Kotak Mahindra AMC
“Market has moved ahead of geo-political tension to pre-budget rally due to solid expectations with growth as the key agenda. Expectation on Q3 earnings is also influencing the market due to healthy outlook with regard to low base effect & mild improvement in economy. On the other hand, next week investors will await for CPI data, consensus is showing inflation to spike further to 6.7% in December due to oil prices and vegetable prices.”
– Vinod Nair, Head of Research, Geojit Financial Services
Global markets:
Asian and European shares firmed as relief over a de-escalation in U.S-Iran military tensions continued to bolster global equities, Reuters reported.
The pan-European STOXX 600 Index rose 0.3 per cent, and was likely to post moderate gains after a rough start to the week, bought about by fears of a full-blown conflict in the Middle East.
Source: Economic Times
