Indian Indices End With Gains On Friday; Led By IT, Auto Stocks

Indian equity benchmark indices ended with gains on Friday, led by IT and auto stocks. While the S&P BSE Sensex closed at 71,107, up by 242 points or 0.34 per cent, the broader Nifty settled 35 points or 0.16 per cent higher at 21,385.

The blue-chip indexes had gained 12.65 per cent and 12.07 per cent over the last seven weeks, aided by strong domestic macroeconomic data, a return of foreign inflows due to an improving US rate outlook and moderation in oil prices. The IT sector hogged the limelight on Friday with the Nifty IT ending with gains of 2.3 per cent. It was aptly supported by auto, pharma, metal and realty stocks, which negated the selling pressure in bank and financial stocks.

Nifty breadth was skewed in favour of the gainers as 38 stocks ended in the green. The top gainer was Wipro which shot over 6 per cent. It was followed by HCL Technologies, Bajaj Auto, Hindalco Industries and Tata Motors. Among the top laggards were Grasim Industries, HDFC Bank, Bajaj Finance, State Bank of India (SBI) and ICICI Bank. Barring banks, most sectors ended the session with gains. The volatility index India VIX settled at 13.71, lower by 0.36 per cent.

FII and FPIs, on Friday, saw a net sales of Rs 2,828.94 crore in the cash segment. A total of Rs 13,734.82 crore was sold against a total purchase of Rs 10,905.88 crore. Domestic institutional investors saw a net purchase of Rs 2,166.72 crore in the cash segment. A total of Rs 8,165.45 crore was sold against a total purchase of Rs 10,332.17 crore.

Meanwhile, Bullish markets are interspersed with minor corrections due to a myriad of factors, and profit booking is one of the critical ones. With the thinning of institutional participation, the markets witnessed volatility but managed to close on a positive note. Over the near the markets may remain volatile, and find their footing only in the new year as the holiday season ends.

Technically, the important key resistances placed in October Nifty future are at 21,385 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional upmove with immediate resistances seen at 21,606 – 21,808 levels. Immediate support is placed at 21,202 – 21,008 levels.