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regular-article-logo Tuesday, 25 June 2024

Stocks shake off poll jitters as Sensex, Nifty end higher amid positive global cues

Market circles said participants resorted to bottom fishing after the recent selloff. They cautioned stocks are likely to remain volatile due to the election season and it would take a firm direction only after the results are announced

Our Special Correspondent Mumbai Published 11.05.24, 10:24 AM
Representational image

Representational image Sourced by the Telegraph

The markets brushed off fears of a poll outcome adverse to the ruling BJP as the Sensex rallied on Friday to end higher 260 points on bargain hunting by investors amid positive global cues.

While the 30-share gauge closed with gains of 260.30 points or 0.36 per cent to settle at 72664.47, the NSE Nifty climbed 97.70 points or 0.44 per cent 22055.20.

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Market circles said participants resorted to bottom fishing after the recent selloff. They cautioned stocks are likely to remain volatile due to the election season and it would take a firm direction only after the results are announced.

Both Asian and European stocks were trading in the green on renewed hopes that the US Federal reserve will cut interest rates later this year. This came after data from the US Labor Department showed more Americans filing for unemployment claims.

On a weekly basis, the BSE benchmark plummeted 1213.68 points, or 1.64 per cent, and the Nifty lost 420.65 points or 1.87 per cent.

“Short covering buoyed by strong overseas market cues helped key benchmark indices end in positive territory, although the overall sentiment remains cautious with bouts of intra-day volatility,” Prashanth Tapse, senior VP (research), Mehta Equities, said.

Foreign portfolio investors (FPIs) continue to remain in a sell mode with provisional data showing they net sold 2,118 crore of stocks on Friday.

Citi bullish

Citigroup has upgraded India to overweight from neutral in its emerging market allocation, citing ``inflecting earnings’’ and strong earnings per share momentum.

The brokerage expects the Nifty to rise from now till the end of this fiscal year as it set a target of 23,900. Its analysts are over-weight on banks, insurance companies, auto, capital goods firms and public sector enterprises.

Bonus impact

Shares of BPCL rose more than four per cent to 618.60 on the BSE after the state-owned refiner announced a 1:1 bonus issue on Thursday.

However, HPCL settled flat at 501.45. It had declared a bonus issue in the ratio of one share for every two held.

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