Markets back to winning ways as IT stocks spurt, log weekly gains

Equity market benchmarks regained footing on Friday after two sessions of declines as IT, bank and energy stocks darted up amid firm global cues.

After a positive opening, the BSE Sensex overcame bouts of volatility to close 329.17 points, or 0.94 per cent, higher at 35,171.27.

Similarly, the broader NSE Nifty surged 94.10 points, or 0.90 per cent, to finish at 10,383.

During the week, the Sensex advanced 439.54 points or 1.26 per cent, while Nifty gained 138.60 points or 1.35 per cent.

IT and bank stocks emerged on top in Friday's session.

Infosys was the biggest gainer in the Sensex pack, rallying 6.94 per cent, followed by TCS, IndusInd Bank, ONGC, HDFC Bank and HCL Tech.

On the other hand, ITC, Bajaj Finance, Kotak Bank and Sun Pharma shed up to 3.54 per cent.

According to traders, broad-based buying on the first day of the new monthly derivatives series and positive cues from global equity markets lifted the benchmarks.

After an unbroken rise in the last two weeks, the markets turned a bit volatile this week, said Joseph Thomas, Head of Research - Emkay Wealth Management.

"This was mainly influenced by factors like the phenomenal rise in the coronavirus cases in the US and India, the military stand-off between India and China at the border, and also with the ongoing spat between China and the US on many issues including trade and the source of the pandemic," he said.

The domestic bourses, for the most part of the week, reflected the broad trends in other global markets, he added.

Sector-wise, BSE IT, teck, oil and gas, energy, utilities and capital goods indices rallied up to 5.06 per cent on Friday, while FMCG, realty and healthcare ended in the red.

Broader BSE mid-cap and small-cap indices rose up to 0.27 per cent.

Global equities continued their upward trajectory, shrugging off rising coronavirus cases.

Bourses in Japan and Seoul ended with significant gains, while Hong Kong settled in the red. Markets in Shanghai were closed for a public holiday.

Stock exchanges in Europe were trading over 1 per cent higher in early deals.

Meanwhile, international oil benchmark Brent crude futures rose 1.27 per cent to USD 41.57 per barrel.

On the currency front, the rupee pared initial gains and settled on a flat note at 75.65 against the US dollar.

India registered its highest single-day surge of 17,296 coronavirus cases, taking the total to 4,90,401 with 15,301 deaths.

Globally, COVID-19 cases have topped 96.2 lakh, with around 4.9 lakh fatalities.