03 Feb , 2023 By : Monika Singh
Indian equity indices rallied over 1.5% on Friday with Sensex closing above 60,800 and Nifty 50 settling above 17,850 led by heavy buying in banking shares and recovery in Adani Group stocks. During the day indices remained volatile, but towards the end of the session, they surged, ending broadly in green. The NSE Nifty 50 surged 243 points or 1.38% to close at 17,854.05 and BSE Sensex skyrocketed 909 pts or 1.52% settling at 60,841.88.
Adani Group stocks recovered today with Adani Ports being the top performer of the Nifty 50 index after Fitch ratings said that it saw no immediate impact on its ratings of Adani Group entities and their securities, following US short-seller Hindenburg Research’s report last week. Adani Enterprises crashed 35% in the intraday today but recovered all its losses and ended the session in green after falling for almost a week. “Markets are rising, assuming that we are in the last phase of the rate hike cycle as indicated by the Fed statement. Adani Group stocks revived post the confident statement by Total Energies, a large French energy company, raising the sentiment of the market. Pharma stocks have taken a beating as a result of weak third-quarter results,”
Banking stocks surged on Friday after the Bank of Baroda reported the highest ever-standalone net profit in Q3. Investors were also hopeful that the country’s largest lender, State Bank of India will also post healthy quarterly results. Though SBI results came after the markets got closed, the financial statement met the market expectations. Bank Nifty surged 830.40 pts or 2.04% to 41,499.70. The index’s top gainers were Bank of Baroda, HDFC Bank, State Bank of India, IndusInd Bank and PNB while IDFC First Bank was the lone loser.
“Nifty opened positive but traded flat in the initial hours. It however made a comeback in the later part of the session to close with gains. Buying continued in consumer and IT sector stocks. Beaten-down banking sector, especially PSU Banks, saw a fresh buying after BOB reported healthy Q3FY23 numbers and the expectation of SBI to announce a good result. Banking stocks will react on Monday to SBI results. Investors await key monthly US jobs data,
Sensex, Nifty rose as a result of dovish comments from global central banks. “On Friday, Indian shares opened higher aided by a rise in optimism that the rate hike cycle may be nearing its end after global central banks hinted at inflation easing. Domestic equities are also rising as a result of dovish comments from global central banks. The European Central Bank (ECB) and the Bank of England (BoE) followed suit a day later after the United States Federal Reserve acknowledged in its monetary policy meeting on Wednesday that the disinflationary process may have begun. At its policy meeting on February 8, the Reserve Bank of India is expected to raise the key policy repo rate by 25 basis points, signalling the end of a nearly year-long tightening cycle,”
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