Value buying spurs a quick pullback rally

Mumbai: Benchmark equity indices rebounded sharply on Friday, with BSE Sensex climbing 2.54 per cent to reclaim the 79,000 level, driven by across-the-board rally and value buying at lower levels. Strong buying by domestic institutional investors and a firm trend in the US markets also bolstered market sentiment, traders said.

The BSE benchmark Sensex jumped 1,961.32 points or 2.54 per cent to settle at 79,117.11. During the day, it surged 2,062.4 points or 2.67 per cent to 79,218.19. A total of 2,446 stocks advanced, while 1,475 declined and 120 remained unchanged on the BSE. The NSE Nifty soared 557.35 points or 2.39 per cent to 23,907.25. All the 30 Sensex firms ended in the green. On the weekly front, the BSE benchmark zoomed 1,536.8 points or 1.98 per cent, and the Nifty climbed 374.55 points or 1.59 per cent.

“The market witnessed a significant broad-based rally, from the oversold territory, predominantly led by large-cap stocks, as their valuations appeared appealing with expectations of improvement in corporate earnings in the second half of the fiscal year. Positive momentum was also observed in global markets due to a modest decline in Japan’s October inflation and 39 trillion yen stimulus package. Moderation in global and domestic political drama provided a relief to the domestic market,”said Vinod Nair, head (Research), Geojit Financial Services.

Hectic buying in blue chip counters like Reliance Industries, IT and teck shares also fuelled the rally in equities.

“Buying emerged at lower levels in blue-chip stocks, causing several index heavy-weights, including Reliance to gain significantly. Buoyed by robust US labour market data as the Initial jobless claims fell by 6,000, marking a seven-month low, which suggests that the job growth rebounded in November after last month’s slowdown,” added Siddhartha Khemka, head (research), Wealth Management, Motilal Oswal Financial Services Ltd.