Markets resume rally as bank stocks spurt; log weekly gains
Reversing the previous session's decline, the BSE Sensex zoomed 306.54 points or 0.90 per cent to end at a three-month high of 34,287.24.
The broader NSE Nifty rose 113.05 points or 1.13 per cent to 10,142.15.
State Bank of India (SBI) was the top gainer in the Sensex pack, surging 7.90 per cent, after the country's largest lender reported an over four-fold jump in standalone net profit for the March quarter at Rs 3,580.81 crore.
Tata Steel, Bajaj Finance, HDFC Bank, NTPC, Axis Bank and ICICI Bank also ended with gains of up to 6 per cent.
On the other hand, TCS, HUL, Bajaj Auto and Infosys were among the laggards, skidding up to 2.19 per cent.
Reliance Industries (RIL) succumbed to profit-booking, ending flat after touching its one-year high in intra-day trade. Continuing its deal-making streak, the company announced sale of 1.85 per cent stake in its digital unit Jio Platforms to Abu Dhabi-based sovereign investor Mubadala for Rs 9,093.60 crore.
During the week, Sensex surged 1,863.14 points or 5.74 per cent, while Nifty advanced 561.85 points or 5.86 per cent.
According to traders, besides stock-specific action, persistent foreign fund inflows and positive cues from global markets led to bullish sentiment here.
On a net basis, foreign portfolio investors bought equities worth Rs 2,905.04 crore on Thursday, provisional exchange data showed.
"The current week has been a good one for the global markets as major frontline markets posted a strong rally," said Sanjeev Zarbade, VP PCG Research, Kotak Securities.
The rally has been driven by positive sentiment generated from gradual lifting of lockdown across economies, despite weak economic readings and civil unrest in the US, he said.
"Markets during the week surprised everyone by moving higher. The only justifiable reason to the current momentum is the liquidity.
"The investable universe is gradually narrowing with shortage of top-graded stocks whereas the abundant monies available for purchasing them are increasing thus pushing frontline stocks higher which gets reflected in the Indices," said Jimeet Modi, Founder and CEO, SAMCO Securities & StockNote.
BSE metal, telecom, basic materials, industrials, bankex and power indices jumped up to 3.86 per cent, while IT and FMCG ended up to 0.75 per cent lower.
Broader BSE mid-cap and small-cap indices outperformed the benchmarks, rallying up to 2.51 per cent.
World equities extended their bull run as more stimulus from the ECB and reopening of countries fuelled economic recovery hopes.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant gains.
Stock exchanges in Europe too opened up to 2 per cent higher.
International oil benchmark Brent crude futures rose 2.73 per cent to USD 41.08 per barrel.
On the currency front, the rupee closed flat at 75.58 against the US dollar.Meanwhile, India saw a record single-day jump of 9,851 coronavirus cases and 273 deaths on Friday, pushing the nationwide infection tally to 2,26,770 and the death toll to 6,348, according to the union health ministry. ANS ABM ABM
(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)
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