MUMBAI: Benchmark indices Sensex and Nifty ended sharply higher on Friday, driven by heavy buying in telecommunication stocks and encouraging domestic inflation data.
After plunging 1,207.14 points in morning trade, the 30-share BSE Sensex recovered to close 843.16 points higher, up 1.04 percent, at 82,133.12. During the session, it touched an intraday high of 82,213.92, gaining 923.96 points or 1.13 percent from its low.
The NSE Nifty climbed 219.60 points or 0.89 percent to settle at 24,768.30, recovering from a loss of 367.9 points in intraday trade.
Among Sensex constituents, Bharti Airtel, ITC, Kotak Mahindra Bank, Hindustan Unilever, Titan, UltraTech Cement, HCL Technologies, and Power Grid emerged as top gainers. On the other hand, Tata Steel, IndusInd Bank, JSW Steel, and Bajaj Finserv were the main laggards.
Retail inflation fell to 5.48 percent in November, coming within the Reserve Bank’s comfort zone, primarily due to easing food prices. This decline has created room for a potential rate cut during the central bank’s policy meeting under new Governor Sanjay Malhotra in February.
CPI inflation
In October 2024, the Consumer Price Index (CPI) based inflation stood at 6.21 percent, while November 2023 recorded 5.55 percent inflation. However, India’s industrial production (IIP) growth slowed to 3.5 percent year-on-year in October, impacted by weaker performances in mining, power, and manufacturing, according to official data released Thursday.
The domestic market smartly recovered from the day’s low, moving out of its consolidation phase, supported by index heavyweights. A gradual easing in food inflation and price hikes by FMCG companies, coupled with recent corrections in valuation, helped the sector outperform.
“Anticipation of a revival in consumer spending during the festive season and year-end holidays added to the positive sentiment,” said Vinod Nair, Head of Research at Geojit Financial Services.
Nair also highlighted the IT sector’s gains, fueled by expectations of increased US spending.
Among global markets, Tokyo, Shanghai, and Hong Kong ended lower, while Seoul posted gains. European markets were trading higher, even as Wall Street closed in negative territory on Thursday.
Foreign Institutional Investors (FIIs) sold equities worth Rs3560.01 crore on Thursday, as per exchange data. Meanwhile, global oil benchmark Brent crude rose 0.54 percent to USD73.77 a barrel.
On Thursday, the Sensex dropped 236.18 points or 0.29 percent to 81,289.96, while the Nifty declined 93.10 points or 0.38 percent to 24,548.70.
