Sensex rises 105 pts, Nifty ends at 17,833 mark; IT shares rally

The headline equity indices ended with decent gains after a volatile session on Friday. After topping the 60,000 mark, the Sensex gave up morning gains to end the day 100 points higher. The Nifty also retreated from 17,923.35 mark and ended the day 0.19% higher. IT, autos and banks shares were in demand. On the flip side, realty, consumer durables and media shares were under pressure.

Global cues were positive as investors digested a record rate hike by the European Central Bank and further comments from Federal Reserve Chair Jerome Powell.

The barometer index, the S&P BSE Sensex, rose 104.92 points or 0.18% to 59,793.14. The Nifty 50 index gained 34.60 points or 0.19% to 17,833.35.

In the broader market, the S&P BSE Mid-Cap index rose 0.16% while the S&P BSE Small-Cap index gained 0.18%.

The market breadth was negative. On the BSE, 1,687 shares rose and 1,756 shares fell. A total of 128 shares were unchanged.

Meanwhile, the NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, dropped 3.20% to 17.72.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.1669 as compared with 7.135 at close in the previous trading session.

In the foreign exchange market, the rupee advanced against the dollar. The partially convertible rupee was hovering at 79.57, compared with its close of 79.69 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement gained 0.56% to Rs 50,640.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, declined 1.07% to 108.53.

In the commodities market, Brent crude for November 2022 settlement rose $1.51 or 1.69% at $90.66 a barrel.

Global Markets:

The Dow Jones index futures rose 225 points, indicating a positive opening in the US stocks today.

Shares in Europe and Asia advanced on Friday. China`s consumer inflation came in at 2.5% in August, lower than the 2.7% recorded in July.

The European Central Bank Thursday hiked interest rates by 0.75 percentage point, raising its deposit to 0.75% from zero, in a largely expected move to tamp down inflation. The bank said it expects more hikes ahead because inflation may rise further in the near term. The central bank noted that the economy was expected to stagnate later in the year.

US stocks rose Thursday after moving between gains and losses as Wall Street weighed Federal Reserve Chair Jerome Powell reiterated that the central bank will do what it takes to fight inflation. He also signaled that a pause in rate hikes or a pivot to cutting interest rates is not coming soon.

Meanwhile, world leaders offered tributes to Queen Elizabeth II, after Britain`s longest-serving monarch died Thursday at age 96.

Buzzing Segment:

The Nifty IT index jumped 2.21% to 28,724. The index has risen 3.54% in three sessions.

L&T Technology Services (up 4.10%), Tech Mahindra (up 3.43%), Larsen & Toubro Infotech (up 3.25%), Mindtree (up 3.03%), Infosys (up 2.45%), Mphasis (up 2.12%), HCL Technologies (up 2.05%), TCS (up 1.59%), Coforge (up 1.55%) and Wipro (up 0.99%) surged.

Stocks in Spotlight:

Rain Industries tumbled 7.75%. Rain Carbon Inc., a wholly owned subsidiary of Rain Industries, announced temporary closure of an operating unit in Europe. It is developing additional energy-related contingency plans for its other European production units in anticipation of potential natural gas shortages and price spikes during the upcoming winter months resulting from the unprecedented and unpredictable geopolitical environment. Rain Carbon`s European footprint is essential to the company`s global operations, and these decisions are being made be taken to ensure the long-term viability of operations.

PNC Infratech gained 1.71% after the company announced the signing of a concession agreement with National Highways Authority of India (NHAI) for a HAM project worth Rs 1,458 crore. The project involves four laning of Sonauli - Gorakhpur section of NH-29E on hybrid annuity mode in the state of Uttar Pradesh. The length of this construction is 79.54 kilometer and the cost of this project is Rs 1,458 crore. The project is to be constructed in 24 months, upon declaration of appointed date and operated for 15 years, post construction.

Life Insurance Corporation of India (LIC) shed 0.05% and Century Enka rose 1.69%. LIC disclosed that it decreased its stake in Century Enka from 5.494% to 3.452% earlier.

Vodafone Idea (VIL) fell 1.44% to Rs 9.55. The media reported that the government will acquire a stake in debt-ridden telecom firm after the company`s stock price stabilises at Rs 10 or above. According to the media reports, VIL board has offered a stake to the government at a par value of Rs 10 per share. The finance ministry had cleared the proposal to acquire stake in VIL in July.

Lupin fell 0.26%. The drug major announced the launch of Sodium Sulfate, Potassium Sulfate and Magnesium Sulfate oral solution in the US market with an approval from the US Food and Drug Administration (USFDA). The said drug is an equivalent generic version of Suprep Bowel prep kit oral solution.

Zydus Lifesciences declined 0.01% after the company said it has acquired the rights to market MonoFerric injections in India and Nepal from Denmark`s Pharmacosmos A/S. MonoFerric, iron isomaltoside 1000 solution for injection or infusion is a rapid single dose IV iron which reduces the number of infusions required to achieve iron correction safely. Mono Ferric is available in over 30 countries, including US and Europe. Over 28 million doses have been administered since launch.

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