Sensex jumps 145 points, Nifty at 17,422; media, realty & IT stocks rally
Declining FII selling is likely to strengthen financials, particularly high-quality banking stocks
Domestic benchmark equity indices opened higher as Asian stocks were mixed Friday as traders evaluated risks from the omicron virus strain, while Treasury yields pared a climb spurred by Federal Reserve comments about a quicker reduction in stimulus. In opening trades, Sensex advanced 145 points or 0.25% to 58,607 while the Nifty was trading at 17,422 gaining 21 points or 0.12%.
“So long as Omicron spread does not lead to restriction of economic activity, markets are likely to ignore it. Sharp economic rebound, rising corporate earnings and surprising risk appetite of investors can impart resilience to the market. The strong market momentum and steadily declining FII selling (Rs 910 cr yesterday) augur well for the markets. Declining FII selling is likely to strengthen financials, particularly high-quality banking stocks. However, investors should exercise caution since uncertainty continues to be high,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Top gainers & losers
Top gainers & losers on the Sensex.
Sectoral strand
Nifty Media index led the sectoral pack with gains of 1.73% amid reports of Puneet Goenka travelling to Los Angeles to close deal with Sony. Followed by Nifty Realty surging 1.03% and the Nifty IT index rose 0.96%. Whereas Nifty Bank, Nifty Auto, Nifty Metal & Nifty Pharma indices were up in the range 0.10-0.40%.
On the downside, the Nifty FMCG index slipped 0.11% as sales for the month of November declined by 14%.
Broader markets
Broader markets mirrored gains in the benchmark indices as the BSE MidCap index jumped 101 points or 0.40% 25,287 whereas the BSE SmallCap index was quoting at 28,524 higher by 197 points or 0.70%.
Bulls had a tight grip on the markets as 1,746 stocks advanced while 647 declined and 88 remained unchanged.
Global markets
Overseas, Asian shares were mixed in Friday, as investors continue to monitor the situation surrounding the omicron Covid variant.
In Japan, the final au Jibun Bank Japan Services Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 53.0 from the prior month’s 50.7 and a 52.1 flash reading.
In US, futures on the Dow Jones Industrial Average shed about 107 points. The November jobs report is set for release Friday.
The three major US stock indices rebounded in Thursday’s session. The Dow gained 617 points. The S&P 500 rose 1.4% and the Nasdaq Composite gained 0.8%.
On the data front, initial jobless claims climbed by 28,000 to 222,000 for the week ended 27 November, the Labor Department reported Thursday.