Mumbai: The BSE benchmark Sensex and broader NSE’s Nifty on Friday rebounded about 49 points to close at 31,262.06 on fag-end buying in sectors such as realty, metal, auto, banking and health care amid a firming trend in global markets. Furthermore, covering-up of short positions by bears too supported the late recovery in stocks, helping wipe off initial losses.
The 30-share index started on a bearish note at 31,196.86 stayed in the negative terrain for most part of the day to hit a low of 31,087.28 as participants indulged in trimming their positions to lock in gains. However, late buying helped it stage a strong comeback to wipe off day’s losses to scale a high of 31,289.99 before ending 48.70 points, or 0.16%, higher at 31,262.06. The gauge had lost 57.92 points in the previous session.
The NSE Nifty also went up by 21 points, or 0.22%, at 9,668.25, after moving between 9,608.15 and 9,676.25. BSE sectoral indices led by realty, metal, auto, banking, health care and capital goods leading the recovery, rising up to 2.60%.
Both the BSE and NSE indices recorded their first weekly fall in five weeks by losing 11.23 points, or 0.03% and 14.75 points, or 0.15%. The broader market outperformed the key indices with the small-cap index rising 0.50% and the mid-cap index rose 0.28%.
“The market bounced back after a subdued momentum during the day as the verdict of UK election has not created any impact in the EMs. On the other hand, Investors are a bit cautious given the market’s strong performance in the last one year compared to the tepid results. Some are under profit-booking mode and waiting for some correction to come back to the market. Also, investors are shifting their focus to the week ahead, FEDs policy decision to get cues on rate hike trajectory." Vinod Nair, Head of Research, Geojit Financial Services Ltd said.
The broader market outperformed the key indices with the small-cap index rising 0.50% and the mid-cap index rose 0.28%.
Meanwhile, Foreign portfolio investors (FPIs) bought shares worth a net ₹ 90.78 crore, while domestic institutional investors (DIIs) had also bought shares worth a net ₹ 738.78 crore yesterday as per provisional data.
Globally, in the Asian region, Japan’s Nikkei up 0.52% and Shanghai Composite Index rose 0.26 percent, while Hong Kong’s Hang Seng down 0.13%.
In the Eurozone, Germany Frankfurt’s up 0.45%, Paris CAC rose 0.40% in their early deals. London’s FTSE edged higher 0.74%.