Key indices drift higher for 2nd day

Stock markets extended gains for a second day on Friday following buying in IT stocks and firm trends in the US markets.

The 30-share BSE Sensex climbed 241.86 points or 0.34 per cent to settle at 71,106.96 points. During the day, Sensex jumped 394.45 points or 0.55 per cent to 71,259.55 points. The broader Nifty went up by 94.35 points or 0.44 per cent to 21,349.40 points. On the weekly front, the BSE benchmark declined 376.79 points or 0.52 per cent and the Nifty dipped 107.25 points or 0.49 per cent.

Vinod Nair, Head of Research at Geojit Financial Services, said: “The ‘buy on dips’ strategy continues to drive investors during the subdued week. Mid- and small-caps remain in the limelight, benefiting from ease in oil prices and the anticipation of a potential rate cut in CY24, supported by slower-than-expected US GDP growth and weakness in the dollar, signalling early rate cuts.”

“Overnight gains in the US markets and a sharp upsurge in domestic IT stocks aided sentiment in local indices. Although markets were a bit wobbly, markets stayed in positive territory in the second half as other sectoral stocks from metal, oil & gas, auto and realty pack rallied behind the markets,” said Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.

In the broader market, the BSE smallcap gauge jumped 1.04 per cent and midcap index climbed 0.74 per cent. Among the indices, realty rallied 2.52 per cent, IT jumped 1.93 per cent, metal (1.92 per cent), teck (1.75 per cent), auto (1.37 per cent) and healthcare (1.25 per cent). Bankex and financial services were the laggards. Among Sensex firms, Wipro jumped over 6 per cent, the most among the frontline companies. HCL Technologies, Tata Motors, Maruti, Tata Steel, Infosys, Tech Mahindra, Larsen & Toubro and JSW Steel were the other major winners. State Bank of India, Bajaj Finance, ICICI Bank, HDFC Bank, Axis Bank and IndusInd Bank were among the laggards.