The domestic equities exhibited an upward trend on Friday, aligning with the global rally, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, reported PTI. This surge followed the decisions of the central banks in the US and the UK to maintain interest rates unchanged. Despite a subdued initial performance, the Nifty gradually climbed throughout the day, eventually closing with gains of 85 points at 22,097. Similarly, the Sensex experienced a notable increase of 190.75 points, reaching a closing figure of 72,832.
Additionally, Khemka observed that the broader market also ended positively, with all sectors, except IT, closing in the green zone. The sectors showing the most significant gains included auto, pharma, and realty stocks.
Following the downward revision of its revenue forecast for FY24 by US technology giant Accenture, the IT sector experienced some selling pressure. Accenture adjusted its full-year revenue growth projection to 1 per cent to 3 per cent from the previously anticipated 2 per cent to 5 per cent. Although the markets commenced trading on a weak note, they swiftly gained momentum, extending across the broader spectrum amidst favourable indicators.
"Next week being a truncated week and the derivatives' monthly expiry, we might see some volatility while Nifty is likely to consolidate at higher levels. Also, US GDP data and other key economic data would keep investors busy," Khemka said.
Vinod Nair, Head of Research at Geojit Financial Services, noted that the domestic market swiftly recovered from its initial downturn and sustained a positive trajectory throughout the day. Nair attributed this resilience to favourable global cues, spurred by dovish remarks from the Bank of England, as well as heightened buying activity at lower levels following a recent sell-off.
Furthermore, the retreat of crude oil prices from recent highs played a role in bolstering the positive sentiment. Despite most sectors witnessing gains, the IT sector remained in the red, influenced by subdued guidance from Accenture, a prominent global IT player, as highlighted by Nair.