Sensex mopped up modest gains amid creation of fresh bets with the beginning of the October series of derivative contracts.
After remaining volatile for much of the day, stocks staged a mild recovery on Friday as the Sensex mopped up modest gains amid creation of fresh bets with the beginning of the October series of derivative contracts. For the week though, the market registered a fall.
The NSE Nifty in the process reclaimed the 8,600-level to close at 8,611.15. The strong showing in the October series added to the investors' confidence level to an extent. Recovery in realty, oil and gas, infrastructure, power, auto, PSU and metal stocks helped both the indices end in the positive terrain.
According to HSBC, the global financial services major, inflation is likely to remain below the Reserve Bank's early 2017 target of 5% for the next 12 months, opening up space for monetary easing.
However, for the week, the Sensex dropped 802.26 points, or 2.79%, while NSE Nifty lost 220.40 points, or 2.49%.
The movement in the rupee too came as a big positive, which put up a strong show against the American currency. "Volatility eased from the previous day, but indecisiveness was visible. With US jobs data and RBI monetary policy scheduled for next week, investor focus is expected to be back on macros soon," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.
Extending Thurday's sharp losses, the Sensex opened lower. But emergence of value-buying across the board meant it wiped off early losses to close higher 38.43 points, or 0.14% at 27,865.96.
The index had tumbled 465 points in Thursday's session after India carried out "surgical strikes" on Wednesday night on terror launch pads across the Line of Control (LoC).
At the close, the 50-share NSE Nifty was at 8,611.15, up 19.90 points, or 0.23%, after moving between 8,637.15 and 8,555.20.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,107.42 crore on Thursday, showed provisional data.
As many as 15 in the 30-share Sensex pack advanced. M&M was in the lead ahead of announcement of monthly auto sales numbers, rising 3.06% followed by GAIL 3.06%. Other big movers were ONGC, Power Grid, Tata Steel, Tata Motors and SBI, surging by up to 2.19%.
The BSE realty index gained the most by surging 3.16%, oil and gas 1.70 %, infrastructure 1.58 % and auto 1.34 %. Broader markets small- and mid-caps performed better than blue-chips, up 2.13% and 1.95%, respectively, as investors widened their bets.
Asian shares tumbled at the close and so did European bourses in their early session, tracking yesterday's sell-off in New York on lingering concerns about future of German banking giant Deutsche Bank over its financial health.
Key indices in Hong Kong fell 1.86 while Japan's Nikkei slumped 1.46%. Shanghai Composite rose 0.21%. Europe's London FTSE fell 0.98%, Paris CAC 1.35% and Frankfurt's DAX 1.14% in their early trade.
The market breadth turned positive as 2,058 stocks ended in the green while 631 finished in the red while 187 ruled steady.
The total turnover on BSE fell to Rs 3,594.73 crore, from Rs 5,428.13 crore on Wednesday.
"Market was volatile and settled with minor gains as investors are yet to come out from the panic situation at the border. Investors are likely to go for a wait & watch mode till it addresses a reduction in current geopolitical
tension," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
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