Fabulous Friday for investors as Sensex rockets over 700 pts; 6 power points that explain uptrend
Friday turned out to be fabulous for both Sensex and Nifty 50. After beating down the 31-scrip index and 50-scrip indices by more than 1,000 points and 300 points at one time in the previous trading session, both Sensex and Nifty defied all doomsday talk to finish on a fantastic note even though today's buying sentiment was affected by the two villains - namely, crude oil prices and Indian rupee.
Friday turned out to be fabulous for both Sensex and Nifty 50. After beating down the 31-scrip index and 50-scrip indices by more than 1,000 points and 300 points at one time in the previous trading session, both Sensex and Nifty defied all doomsday talk to finish on a fantastic note even though today's buying sentiment was affected by the two villains - namely, crude oil prices and Indian rupee. Sensex closed at 34,733.58 points, above by 732 points or 2.15%, while Nifty 50 was up by 237.85 points or 2.32%, closing at Rs 10,472.50 points.
Interestingly, Sensex gained over 700 points so far on Dalal Street today, which results in the most rise in almost 19 month.
Let's understand what boosted Sensex to such levels.
Large caps turned gainers
Majority of large cap stocks saw buying sentiment, which led to massive rise in valuation.
Top shares on BSE which performed outstandingly today were - Maruti taking the lead at Rs 7283.05 per piece high by 5.89%, Mahindra & Mahindra at Rs 768.80 per piece high by 5.29% followed by Kotak bank at Rs 11.69.40 per piece high by 4.87%, Coal India at Rs 278.75 high by 4.56%, Bajaj auto at Rs 2634.00 per piece high by 4.35%,Indusland bank at Rs 1651.35 per piece high by 3.71% and ITC at Rs 274.70 per piece high by 3.58%.
Other companies that were in gainers list are - Reliance at Rs 1126.40 high by 3.42%, Tata steel at Rs 574.95 high by 3.36%, Adani ports at Rs 324.75 per piece high by 3.32%, Asian paints at Rs 1255.65 per piece high by 3.26%, Vedanta at Rs 214.20 high by 2.86%, ONGC at Rs 157.20 high by 2.81%, Yes bank at Rs 246.70 high by 2.79% and Hindustan Unilever at Rs 1568.65 per piece high by 2.63%.
Some of the gains were also added by HDFC at Rs 1730 per piece high by 2.62%, Asian paints at Rs 1257.60 per piece high by 3.42%, HDFC development at Rs 1728 per piece high by 2.50%, ICICI bank at Rs 318.80 per piece high by 2.31% and HDFC bank at Rs 1979 per piece high by 2.23%.
Buying sentiments in midcap
S&P BSE Midcap performed well closing at 14,286.22 per piece high by 337.90 points or 2.42.
On the index, the best performers were Tata Power at Rs 68.85 up by 10.43% followed by Edelweiss Financial Service at Rs 180.50 per piece above by 9.66%, Reliance Infrastructure at Rs 328.45 per piece up by 9.14%, Adani Power at Rs 32.60 per piece high by 8.85%, Reliance Capital at Rs 261.80 per piece high by 8.34% and Reliance Power at Rs 28.05 per piece high by 8.30%.
S&P BSE becomes favorite pick
S&P BSE small cap finished at Rs 14159.43 per piece high by 359.02 points or 2.60%.
Companies which were highly purchased and become top gainers were - PG Electroplast Limited at Rs 128.30 per piece above by 19.96%, Lincoln Pharmaceuticals at Rs 251.35 per piece higher by 19.61%, BPL at Rs 38.80 per piece soaring by 19.57%, Arshiya at Rs 36.40 per piece up by 19.34%, Sadbhav Engineering at Rs 237.85 per piece high by 17.89% and Capri Global Capital Limited at Rs 106.50 per piece high by 16.33%.
Six sectors boosting performance
The S&P BSE Auto became the top performer, as it closed at Rs 20419.72 per piece high by 787.02 points or 4.01%. Companies like Eicher motors, Maruti, M&M, Apollo tyres and Bajaj Auto gained most.
Auto stocks were joined by banking ones, as the S&P BSE Bankex closed at Rs 28429.02 per piece high by 677.26 points or 2.44%. On this index, the best performers were Kotak bank ahead of its Q2FY19 results, followed by Indusland bank, PNB bank, Federal bank and Yes bank.
Meanwhile, S&P BSE Metal and S&P BSE Consumer durables also joined the bandwagon of gainers as they closed at Rs 13088.54 and 18733.78 up by 482.74 points and 425.79 points respectively.
Even, S&P BSE Oil & Gas boosted the Sensex, by ending at Rs 13276.54 per piece high by 396.98 points or 3.08%. This sector has been performing well even when Sensex had negative trend. Top gainers today on this index were - HPCL, Indraprastha Gas, BPCL, Reliance Industries and ONGC.
Finally, some push was given by S&P BSE Fast Moving Consumer Goods which also performed well today, before closing at Rs 10973.19 per piece high by 295.29 points or 2.77%.
Relaxation in rupee
Today, turned out to be a very good day for Indian rupee as it finally saw some relief against US benchmark dollar index at interbank forex market. The domestic currency strengthened 53 paise to 73.59 (intra-day) against the US dollar.
Rupee eased despite Brent crude rising by 1.16% to $81.19 a barrel. This rise in oil prices was after easing by nearly 3% in previous two trading sessions.
Domestic investors continued to be the major buyers, whereas once again foreign investors made selling in Indian markets. The Domestic institutional investors (DIIs) purchases worth a net of Rs 1,888 crore Thursday, while foreign institutional investors (FIIs) sold shares to tune of Rs 2,869 crore.
According to Reuters report, shares worldwide were set for their biggest daily gains in nearly a month on Friday as European and Asian markets recovered from a days-long sell-off that left them set for their worst week since February.
After Asian shares rose overnight, European stocks opened higher, with the pan-European STOXX 600 up 0.7 percent.
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Reportedly, S&P stock futures pointed to a rebound in U.S. stocks later in the day, while the VIX volatility index climbed down from an eight-month high. The MSCI All-Country World index, which tracks shares in 47 countries, was up half a percent on the day.