India’s blue-chips rebounded 1% due to healthy corporate earnings and hopes of reducing U.S. inflation, but experienced their worst weekly fall in over a month. The S&P BSE Sensex closed at 63,782.80, while the Nifty 50 index increased 1.01%. Post-earnings rallies lifted public sector banks 4.11%…
India’s blue-chips bounced back by 1% on Friday, helped by some healthy corporate results and hopes of easing U.S. inflation, but a six-session losing streak ensured the indexes posted their worst weekly decline in more than a month.
The Nifty 50 index (.NSEI) settled 1.01% higher at 19,047.25, while the S&P BSE Sensex (.BSESN) rose 1.01% to close at 63,782.80.
However, they lost nearly 2.5% this week, the steepest such drop since the week ended Sept. 22, buffeted by elevated U.S. yields, high oil prices and worries that the Middle East conflict could widen.
On the day, Nifty 50 constituents Cipla (CIPL.NS), Maruti Suzuki India (MRTI.NS) gained 2.03% and 1.31%, respectively, on beating profit estimates for the September quarter.
Public sector banks (.NIFTYPSU) gained 4.11%, boosted by post-earnings rallies in Punjab National Bank (PNBK.NS), Indian Overseas Bank (IOBK.NS) and Canara Bank (CNBK.NS).
IT stocks (.NIFTYIT), battered in the past two weeks by weak corporate earnings, gained 1.24% after data showed inflation cooled in the United States, a key market for IT companies.
“While the consolidation is likely to continue in Indian markets, a sharp correction in Nifty 50 is unlikely,” said Aishvarya Dadheech, chief investment officer at Fident Asset Management.
“Festive demand, a likely pre-election rally and reallocation to large-caps could power the benchmark.”
Even the more domestically focused small- (.NIFSMCP100) and mid-caps (.NIFMDCP100) gained, adding 2% and 1.5%, respectively.
They have lost 5.1% and 6.4%, respectively in the past six sessions. However, they are still up 30% and 23%, respectively, so far this year, well above the Nifty’s 5.2% increase.
“The correction in small- and mid-caps over the last week is still puny compared to the rally over the past six to seven months,” said analysts at Kotak Institutional Equities.
Reliance Industries (RELI.NS) rose 1.8% ahead of its quarterly results after the bell. The oil-to-telecom conglomerate is expected to post a 35.2% increase in profit.
Conclusion
India’s blue-chips experienced a 1% rebound on Friday, thanks to healthy corporate earnings and hopes of reducing U.S. inflation. However, a six-session losing skid led to the indexes’ worst weekly fall in over a month. The S&P BSE Sensex finished at 63,782.80 while the Nifty 50 index rose 1.01% to 19,047.25. The indices plummeted almost 2.5% this week, the largest drop since Sept. 22, due to high U.S. rates, oil prices, and Middle East crisis concerns.. Nifty 50 constituents Cipla and Maruti Suzuki India climbed 2.03% and 1.31%, respectively. Post-earnings rallies in Punjab National Bank, Indian Overseas Bank, and Canara Bank lifted public sector banks by 4.11%. IT stocks rose 1.24% following disappointing corporate earnings. Fident Asset Management chief investment officer Aishvarya Dadheech said a sharp correction in the Nifty 50 is unlikely, with festive demand, a pre-election rally, and reallocation to large-caps potentially driving the benchmark.
