Markets extend gains as US banks liquidity rescue gives relief; Nifty hits 17,100, Sensex nears 58k; HCL Tech top gainer
2 min read 17 Mar 2023, 04:49 PM ISTSensex closed at 57,989.90 up by 355.06 points or 0.62%. Nifty 50 rose by 114.45 points or 0.67% to end at 17,100.05. Bank Nifty rallied nearly 466 points or 1.2%, while BSE Bankex surged by over 541 points or 1.2%.
PremiumMarkets extended their gaining spree on Friday driven by broad-based buying with banking, realty, and metal stocks outperforming the board. Sensex neared the psychological mark of 58,000, while Nifty 50 regained a little over the 17,100 level. The sharp rebound in global cues on expectations of relief in banks turmoil boosted domestic equities.
Sensex closed at 57,989.90 up by 355.06 points or 0.62%. Nifty 50 rose by 114.45 points or 0.67% to end at 17,100.05. Bank Nifty rallied nearly 466 points or 1.2%, while BSE Bankex surged by over 541 points or 1.2%.
In regards to sectoral indices, on BSE, the Metal index rebounded massively to close with nearly 461 points or 2.42% gains. Also, the Realty index soared by 3.2%, while the IT index jumped over 1.1%.
In broader markets, Small cap stocks on BSE recovered previous losses to rise by nearly 187 points.
HCL Tech was the top gainer on Sensex, zooming by nearly 3.6%. Ultratech Cement and Nestle followed with an upside of 2.5% and 2.3% respectively. Other stocks such as Tata Steel, Kotak Bank, ICICI Bank, Bharti Airtel, HDFC Bank, HDFC, Infosys, and L&T rallied between 1-2%.
Among the losers on Sensex was --- ITC in the lead with a downside of 1.5% followed by Maruti Suzuki, NTPC, and Asian Paints.
Vinod Nair, Head of Research at Geojit Financial Services said, "Following the sharp rebound in the global markets, the domestic indices took a breather in hopes of relief from the global banking turmoil."
Nair added, "Global equities reversed their selling streak on reports of a rescue package for the beleaguered First Republic Bank, along with an aid provided to Credit Suisse from the Swiss Central Bank, which would soothe concerns over the global financial stability. On the other hand, the ECB further raised its rates by 50 bps, indicating its preparedness to provide liquidity to banks upon necessity."
At the interbank forex market, the rupee strengthened against the US dollar as market sentiments improved after liquidity rescue in some of the US and European banks. The local unit closed at 82.5525 against the greenback compared to the previous print of 82.73 per dollar. For the entire week, the rupee however has depreciated by around 0.6%.
On Thursday, First Republic Bank received uninsured deposits amounting to $30 billion from major US banks such as Bank of America, Citigroup, JP Morgan, Goldman Sachs, Morgan Stanley, and Wells Fargo among others.
Going ahead, on Nifty 50, Rupak De, Senior Technical Analyst at LKP Securities said, a Doji pattern followed by a recovery candle on the daily chart indicates the possibility of a bullish reversal. On the higher end, immediate resistance is placed at 17250, where the bears might try to return to the market. However, if bulls take the Nifty above 17250, the index may move towards 17500–17600. On the lower end, support remains intact at 16950.
Meanwhile, on Bank Nifty, Kunal Shah, Senior Technical Analyst at LKP Securities said, the index witnessed a sharp recovery from the lowest levels and the index formed a morning star pattern on the daily chart. The index if it manages to hold the support of 39,000 on the downside can witness a pullback rally towards 40,000. A sustained move above 40,000 will open up room for a big rally toward the 41,000 level.
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