MUMBAI: Benchmark indices ended higher on Friday, with the Sensex rising 965 points and the Nifty reaching 24,330, driven by buying in blue chip stocks in Reliance Industries, banks and IT.Additionally, traders said a stronger rupee against the US dollar led to improved sentiment, even as the broader market remained mostly negative on weak global cues.“There is a shift in market momentum, with a strong move towards large-cap stocks, led by IT and banking sectors. This is supported by optimism over business updates and Q1 earnings outlook,” said Vinod Nair of Geojit Investments. This trend appears to be largely driven by local institutional investors shifting from expensive mid-cap and small-cap stocks to more attractive value-capable stocks that offer a better risk-reward profile, he added.Among Sensex stocks, Tech Mahindra jumped 3.9% after it reported a 28.4% rise in June quarter net profit to Rs 1,465 crore and expressed confidence in the demand environment.The winners also included Kotak Mahindra Bank, Tata Consultancy Services, Reliance Industries, Hindustan Unilever, Mahindra & Mahindra, Axis Bank, ICICI Bank and Bajaj Finance. Sun Pharma, Trent, Bharti Airtel and Ultratech Cement were among the laggards.
Commodities, industrials, communications and metals were the laggards. Brent crude rose 1.79 percent to $85.5 per barrel. Meanwhile, the rupee settled at 14 paise at 96.3 against the US dollar. “Indian equity markets ended the week on a strong note, extending their recovery as broad buying in heavyweight banking, financial and IT stocks helped benchmark indices outperform weak global signals,” said Ponmudi R, CEO, Enrich Money, an online trading and wealth technology company. Agencies
