Sensex made a sharp rebound, climbing over 800 points on Friday, after witnessing a range-bound momentum this week. Nifty50 claimed the psychological 25k level mark as investor sentiment switched to bargain buying. Volatility took a breather with D-street's fear index, Nifty Vix, plummeting 5.3%.
So far this week, the volatility index has dropped over 8.8%. On Friday, BSE Sensex concluded the trading session at 82,408.17 level mark, up by more than 1,000 points or 1.29%. Whereas, Nifty50 ended above the psychological 25k level mark, marking a surge of 286 points or 1.15%.
Nearly all stocks from the Sensex 30 pack were trading in the green, except Infosys and Maruti Suzuki. Mahindra and Mahindra, Bharti Airtel, Nestle India, PowerGrid, SBI and ICICI Bank were among the top gainers. All sectoral indices were trading in the positive territory. The Nifty PSU Bank index was the best-performing index, experiencing a surge of more than 100 points or 1.5%.
Meanwhile, foreign investor sentiment improved with FIIs buying domestic equities worth ₹934.62 crore on Thursday. Domestic Institutional Investors (DIIs) also remained net buyers, purchasing equities ₹605.97 crore. On the geopolitical front, oil prices took a breather. Brent crude futures declined over 2.61% to $76.79 per barrel. Rupee's value also rose by 13 paise to 86.6 against the US dollar.
However, a major sentiment push on the D-street came after the Reserve Bank of India (RBI) released the finalised guidelines for project finance. This will provide lenders a major relief by lowering the provisioning requirements compared to what was proposed earlier. The BSE PSU index climbed by more than 200 points or 1.14%.
Nifty Bank followed a similar trajectory, and surged by around 570 points or 1.03%, trading at 56,154.35 level mark.
Meanwhile, gold price took a breather in the commodity market after US Fed's hawkish comments on interest rates
"Gold’s prices rally took breather this week on profit-booking, after U.S. Fed's hawkish comments on interest rates and easing geo-political risk premium following reports that US President Donald Trump likely decide on entering the Iran-Israel war in two weeks- leaving some room for Iran to negotiate on its nuclear program," said Pranav Mer, vice president, EBG - commodity and currency research, JM Financial Services Ltd.
"On charts prices may find some resistance around Rs. 99,300/ 99,650, while on the downside support is seen at Rs. 98,000/ 97,650" Mer said.
