Stock market: Equity benchmark indices started the trade on a firm note on Friday amid a positive trend in the global stock markets and foreign fund inflows but later turned volatile. The 30-share BSE Sensex climbed 205.08 points to 61,636.82 in early trade. The NSE Nifty advanced 56.2 points to 18,186.15 in initial deals.
Later, both benchmark indices turned volatile and were trading marginally lower. The Sensex quoted 48.29 points lower at 61,383.45 and the Nifty dipped 28.30 points to 18,101.65. Among the Sensex firms, State Bank of India, Infosys, HCL Technologies, Tech Mahindra, Axis Bank, Wipro, ICICI Bank, Power Grid, Kotak Mahindra Bank and Mahindra & Mahindra were the major gainers.
ITC, NTPC, Titan, Larsen & Toubro, Maruti and Tata Motors were among the laggards. In Asia, Seoul, Tokyo and Shanghai markets were trading in the green, while Hong Kong quoted lower. The US market had ended on a positive note on Thursday.
FIIs buy equities worth over 970 crore
Foreign Institutional Investors (FIIs) continued their buying activity as they bought equities worth Rs 970.18 crore on Thursday, according to exchange data. Meanwhile, global oil benchmark Brent crude climbed 0.71 per cent to USD 76.40 per barrel.
Intra-day volatility may persist given the recent downward trend, said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. The Sensex had declined 128.90 points or 0.21 per cent to settle at 61,431.74 on Thursday. The Nifty fell 51.80 points or 0.28 per cent to end at 18,129.95.
"Nifty is finding it difficult to break the 18,100-18,400 range, in spite of favourable global cues and good Q4 results. The US 10-year bond yield has risen and the rupee has weakened to the dollar. This currency movement is not supportive for the equity market. FII buying is getting neutralised by Domestic Institutional Investors (DII) selling," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Asian shares mostly rise except for China
Meanwhile, Asian shares were mostly higher on Friday as hopes grow that the US Congress will reach a deal to avoid defaulting on the nation's debt.
Japan's benchmark Nikkei 225 rose 0.8 per cent in early trading to 30,827.87. Australia's S&P/ASX 200 gained 0.5 per cent to 7,270.20. South Korea's Kospi added 0.6 per cent to 2,529.68.
Chinese shares fell on renewed worries set off by signs an extended lockdown over the coronavirus pandemic was hurting sales. Also weighing on Chinese shares were inflationary pressures and geopolitical risks, analysts said.
Hong Kong's Hang Seng slipped 1.4 per cent to 19,449.72, while the Shanghai Composite lost 0.7 per cent to 3,274.87.
“While the broader risk environment has been singlehandedly uplifted by progress around the US debt ceiling negotiations, Chinese equities continue to struggle for gains,” said Yeap Jun Rong, market analyst at IG.
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Wall Street shares see a rise
Wall Street shares rose after more companies reported better profits than expected, while yields climbed after a Federal Reserve official cautioned the end to its interest-rate hikes may not arrive as soon as Wall Street hoped.
The S&P 500 gained 0.9 per cent, adding to its rally from the day before as hopes rise that the US government can avoid a disastrous default on its debt.
The Dow Jones Industrial Average added 115 points, or 0.3 per cent, while the Nasdaq composite climbed 1.5 per cent. The S&P 500 gained 39.28 points to 4,198.05. The Dow rose 115.14 to 33,535.91, and the Nasdaq climbed 188.27 to 12,688.84.
(With PTI inputs)
