The BSE Sensex shot up 425 points in opening led by private banking & financials - especially HDFC Bank - after RBI lifted the ban on FIIs investment; but erased more than half of gains due to some profit booking in banks and technology shares as the day progressed.
Equity benchmarks closed off day's high amid volatility on Friday, supported by private banking & financials and pharma stocks. The BSE Sensex shot up 425 points in opening led by HDFC Bank after RBI lifted the ban on FIIs investment; but erased more than half of gains due to some profit booking in banks and technology shares as the day progressed.
The Sensex ended at 28468.75 - the highest closing level in five months - , up 167.48 points from the previous close. The 50-share NSE Nifty rose 43.70 points to end at 8821.70 after hitting a day's high of 8896.45.
It's a clear sign that Nifty is facing pressure at higher levels, Jayant Manglik of Religare Securities says.
Stocks are also seeing volatile swings these days and expect this to continue due to the derivatives expiry ahead, he feels. He suggests limiting leveraged positions in this situation.
Ajay Srivastava of Dimensions Corporate Finance Services cautions, the market valuations are not cheap and investors need to be picky and ready to take 'serious risks' to see healthy returns.
The broader markets slightly underperformed benchmarks, with the BSE Midcap index rising half a percent, though the market breadth was balanced. Of the 3022 stocks traded today, 1426 were gainers and 1390 were losers on the BSE.
Benchmark indices retained upside for the fourth consecutive week as the Sensex gained 0.5 percent and Nifty rose 0.3 percent, led by banks.
Shares of HDFC Bank, the country's second largest private sector lender that has more than 8 percent weightage in Nifty 50, ended at record high of Rs 1,377.15. It rallied 10 percent to hit an intraday all-time high of Rs 1,450 on major buying after RBI lifted the ban on FIIs investment but lost 5 percent from day's high to finish with 3.75 percent gains as the Reserve Bank put it back in FIIs ban list after foreign shareholding crossed overall limit of 74 percent during the day. HDFC rose 0.6 percent.
The stock helped Nifty Bank to hit record high intraday. It ended 4 points below its record closing level hit on January 27, 2015, up 1.5 percent. ICICI Bank rose 1.5 percent while SBI and Axis Bank lost over half a percent.
Pharma stocks remained in limelight for second consecutive session. Sun Pharma surged 4 percent again. Cadila Healthcare rallied 5 percent on top of 20 percent gains in previous session as Morgan Stanley stayed overweight on the stock, with increased target price at Rs 539 from Rs 439 after the company did not get any observations from USFDA for Moraiya facility.
GAIL, IndusInd Bank and Tata Power ended at fresh 52-week closing high, up more than 1 percent. Reliance Industries, Tata Motors and Lupin gained 1-1.5 percent.
After inclusion in the Nifty with effect from March 31, Indiabulls Housing and IOC gained more than 2 percent while BHEL and Idea Cellular were under pressure as both will be excluded from the index.
Infosys & TCS lost more than 1 percent on profit booking.