Lower inflation data, coupled with the revived global sentiment, helped the Sensex bounce back after Thursday’s steep fall and end 30 points higher at 27,673.60 in a choppy trade on Friday, but gains were restricted by a mixed start of the earnings season.
Infosys fell 2.34% even as the company reported a 6.1% rise in its second quarter net profit but cut its annual revenue growth forecast for the second time in three months on an “uncertain business outlook”.
While, shares of country’s largest software exporter, TCS, on Friday surged 1.61% to Rs 2,365.90 after the company reported an 8.4% rise in its consolidated net profit at Rs 6,586 crore for the second quarter ended September 30.
The investor sentiment received a boost after retail inflation fell to a 13-month low of 4.31% and wholesale inflation at 3.57%, creating headroom for further rate cuts by the Reserve Bank of India in coming months.
Besides positive domestic macroeconomic data, a firming trend in global markets with upbeat Chinese inflation data, easing investor concerns over global growth and the health of the world’s second-biggest economy influenced the trading sentiment.
“Market was not cheered even though the CPI inflation cooled to 4.31% as the mixed start to the quarter results did not comfort investors. Global market rebounded with the positive inflation data from China, while the investors are eyeing today’s commentary from Fed chair for any cues in rate hike trajectory,” Vinod Nair, head of research, Geojit BNP Paribas Financial Services, said.
The Sensex opened positive at 27,712.22 and advanced to 27,763.54, but due to profit booking at higher levels shed most grounds to settle the session at 30.49 points, or 0.11% higher at 27,673.60. Intraday, it touched a low of 27,548.18.
The gauge had plunged 439.23 points on Thursday after a slew of global factors such as weak Chinese export data and Fed rate hike talks unnerved investors.
The NSE Nifty rose 10.05 points, or 0.12%, at 8,583.40 after shuttling between 8,604.45 and 8,549.80.
However, for the week, the Sensex dropped 387.54 points, or 1.38%, while the Nifty lost 114.20 points, or 1.31%.
The broader markets too saw some buying activity with the BSE small-cap advancing 0.83% and mid-cap ending higher by 0.81%.
Meanwhile, foreign portfolio investors sold shares worth a net Rs 911.53 crore on Thursday, showed provisional data.
Shares at other Asian bourses ended higher and so did European bourses in their early session. Key indices in Hong Kong rose 0.88% while Japan’s Nikkei gained 0.46%. Shanghai Composite rose 0.08%.