Brisk buying in IT sector, props up markets, Sensex adds 179 points, Nifty gains 52 points

Benchmark stock indices Sensex and Nifty closed higher for a second straight day on Friday, following gains in IT, tech and capital goods shares amid fresh foreign capital inflows.

After slipping briefly during the late afternoon trade, the 30-share BSE Sensex made a quick recovery and jumped 178.58 points or 0.25 per cent to settle at 72,026.15. During the day, it soared 308.91 points or 0.42 per cent to 72,156.48.

The Nifty climbed 52.20 points or 0.24 per cent to 21,710.80.

On a weekly basis, the BSE benchmark declined 214.11 points or 0.29 per cent, and the Nifty dipped 20.6 points or 0.09 per cent.

"Markets traded volatile and ended marginally higher amid mixed cues. After the initial uptick, the Nifty drifted gradually lower and oscillated in a range till the end.

"Meanwhile, a mixed trend continued on the sectoral front wherein recovery in IT majors and follow-up buying in select heavyweights kept the traders occupied. The broader indices managed to edge higher for yet another session wherein smallcap gained over half a per cent," Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, said.

Among the Sensex firms, Larsen & Toubro, Tata Consultancy Services, Infosys, HCL Technologies, Hindustan Unilever, Axis Bank, ICICI Bank and Wipro were the major gainers.

Nestle India, Asian Paints, JSW Steel, Kotak Mahindra Bank and HDFC Bank were among the losers.

In the broader market, the BSE smallcap gauge climbed 0.61 per cent, and the midcap index rose 0.19 per cent.

Among the indices, IT jumped 1.29 per cent, capital goods (1.27 per cent), teck 1.03 per cent, industrials (0.97 per cent), telecommunication (0.59 per cent) and consumer discretionary (0.35 per cent).

Commodities, consumer durables and metal were the laggards.

"Investors are also staying cautious ahead of eurozone inflation data today. On the domestic front, the market is moving towards the results season, and we expect the exuberance of the broader index may be tested if the December quarter earnings do not justify the valuation," said Vinod Nair, Head of Research, Geojit Financial Services.

The services sector growth in India rose to a three-month high in December, supported by favourable economic conditions and positive demand trends, a monthly survey said on Friday.

The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 56.9 in November to 59 in December, highlighting a sharp increase in output that was the most pronounced since September.

In Asian markets, Tokyo settled in the positive territory while Seoul, Shanghai and Hong Kong ended lower.

European markets were trading with losses. The US markets ended mostly lower on Thursday.

Meanwhile, global oil benchmark Brent crude climbed 0.94 per cent to USD 78.32 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,513.41 crore on Thursday, according to exchange data.

On Thursday, the BSE benchmark rose 490.97 points or 0.69 per cent to settle at 71,847.57, and the Nifty surged 141.25 points or 0.66 per cent to 21,658.60.

Rupee gains ground against $

The rupee appreciated 8 paise to close at 83.16 against the US dollar on Friday, helped by a positive trend in domestic equities and fresh foreign capital inflows.

However, rising crude oil prices in international markets and a strong greenback overseas restricted gains for the local unit, forex traders said.

At the interbank foreign exchange market, the local unit opened flat at 83.23 against the greenback.

The rupee oscillated between an intra-day low of 83.24 and a high of 83.12 against the greenback and finally settled at 83.16, higher by 8 paise from its previous close of 83.24.

"The Indian rupee remained the second-best performer among the Asian currencies following Chinese currencies. The dollar inflows and stable crude oil prices helped the rupee come buck the past two week's bearish trend," said Dilip Parmar, Research Analyst at HDFC Securities.

The expectations of a strong December US jobs report could temporarily reverse the soft-landing playbook, Parmar said.

Traders will also closely watch India's 2024 growth forecast for next week's rupee directions, Parmar said, adding that from the level front, spot USD/INR has support at 83.10 and resistance at 83.35.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.25 per cent lower at 102.68.

On the domestic macroeconomic front, the services sector growth in India rose to a three-month high in December supported by favourable economic conditions and positive demand trends.

Oil gains

Crude oil prices on Friday increased Rs 37 to Rs 6,071 per barrel in futures trade as participants widened their positions following a firm spot demand.

On the Multi Commodity Exchange, crude oil for January delivery traded higher by Rs 37, or 0.61 per cent, at Rs 6,071 per barrel in 13,824 lots.

Analysts said raising of bets by participants kept crude oil prices higher in futures trade.

Globally, West Texas Intermediate crude oil was up by 0.80 per cent to $72.77 per barrel, and Brent crude futures, the global oil benchmark, advanced 0.90 per cent to $78.29 per barrel.

Gold down

Gold prices on Friday fell Rs 55 to Rs 62,585 per 10 grams in futures trade as speculators reduced their positions.

On the Multi Commodity Exchange, gold contracts for February delivery traded lower by Rs 55 or 0.09 per cent at Rs 62,585 per 10 grams in a business turnover of 12,876 lots.

Analysts attributed the fall in gold prices to weak global cues.

Globally, gold was trading 0.03 per cent higher at USD 2,050.70 per ounce in New York.