Indian benchmarks rose on Friday, with the Sensex jumping 804 points or 1.04 percent to trade at 77,960, while the Nify50 regained the 23,600 mark, up 1 percent at 10:14 AM. Banking and IT stocks led the recovery after the markets hit five-month lows in the previous session.
Among the Sensex’s constituents, State Bank of India (SBI), ICICI Bank, Tata Motors, Power Grid, IndusInd Bank, and NTPC were the openers, driving the market. However, Adani Group shares remain under pressure following allegations of bribery and fraud against Gautam Adani. Adani Green Energy fell nearly 8 percent, while Adani Energy Solutions fell 7 percent.
Broad market dynamics
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, explained, “The market correction of around 11 percent from the September peak is not a crash but a correction. While the broader market appears to be strong, this strength is due to earnings, not fundamentals. Banking and IT large caps remain safe bets, while FMCG, metals, and oil and gas are weak. “
Landmarks of land and crude oil
In Asia, chipmakers lifted shares, with Taiwan and South Korea gaining more than 1 percent each. The Nikkei rose 0.8 percent. Meanwhile, Brent crude futures rose 0.2 percent to USD 74.37 per barrel, as tensions rose following Russia’s missile strike in Ukraine.
Rupee hits low
The Indian rupee weakened to 84.4975 against the dollar, its lowest level in history, as continued outflows and geopolitical risks weighed on the currency.
FII/DII activity
On November 21, foreign institutional investors (FIIs) sold shares worth Rs 5,300 crore, extending their selling streak to 37 days, while domestic institutional investors (DIIs) bought shares worth Rs 4,200 crore .
Market view
Dr. Vijayakumar added, “US markets are still in good shape with a YTD return of 25.43 percent. India’s country is beautiful, but the ongoing recovery faces headwinds. Investors should focus on strong large caps. “
