Benchmark stock market indices broke their losing streak triggered by a sharp fall in Adani group stocks in the previous session to open higher on Friday.
The S&P BSE Sensex was up 496.10 points to 77,651.89, while the NSE Nifty50 gained 72.25 points to 23,422.15 as of 9:21 AM.
Adani group stocks, which were down up to 20% on Thursday, recovered from the shockwaves of the bribery charge against Adani Group Chairman Gautam Adani by US authorities.
Shares of Adani Enterprises Ltd were down by 1.45% to Rs 2,152.05, while Adani Ports stocks was down 2% to Rs 1,091.25.
Adani Energy Solutions shares fell 5.39% to Rs 659.70 after having fallen 19% in the previous session.
Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the mother market US is bullish with 25.43% return YTD (year to date). These factors suggest that the undertone of this market is positive.
Banking sector stocks showed strong momentum with State Bank of India (SBI) leading the gainers, rising 1.81%, followed by HDFC Life advancing 1.78%, and IndusInd Bank gaining 1.72%.
Healthcare major Apollo Hospitals moved up by 1.70%, while Power Grid Corporation added 1.56%.
Axis Bank declined by 0.35%. Consumer goods companies saw minimal changes with Britannia slipping 0.05% and Trent showing a marginal decline of 0.04%.
“The market can recover from the present levels since yesterday’s selling was largely due to the fall out of the Adani issue. But considering the headwinds the market is facing, a sustained recovery is unlikely. The strength in the broader market should not be confused with the fundamental strength of the segment. The strength of the broader market, particularly the midcaps, is due to liquidity and not fundamentals. Fundamental strength and safety are in large-caps. Banking and IT are fairly valued. FMCG, metals and Oil & Gas are weak,” he added.
Most sectoral indices traded in positive territory, with Nifty PSU Bank leading the gains with an advance of 1.70%, followed by Nifty Realty which rose 1.45%. Banking and financial sectors showed broad strength with Nifty Bank gaining 0.91%, Nifty Financial Services up 0.81%, Nifty Financial Services 25/50 advancing 0.86%, and Nifty Private Bank rising 0.59%.
The IT sector performed well with Nifty IT climbing 0.85%. Other sectors posting gains included Nifty Auto (0.14%), Nifty Pharma (0.21%), and Nifty FMCG showing a marginal increase of 0.02%.