Markets surge 900 points on Fed stance, Adani deal; Most Asian markets end week on high note

Benchmark indices made a stellar recovery on Friday, with the Sensex and Nifty jumping over 1.5% on positive signals by the US Fed and a surge in Adani Group stocks.

The jump in Adani stocks followed global equity fund GQG’s cumulative Rs 15,466-crore investment in four group entities via block deals late on Thursday, saying the group has “fantastic assets”.

The Sensex surged 899.62 points or 1.53% to 59,808.97, while the broader Nifty50 gained 272.45 points or 1.57% to cross the 17,500-mark and close at 17,594.35.

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Continuing its upward trajectory, Adani Enterprises jumped 17% on Friday, while Adani Ports gained 9.8%. Six entities were locked in their upper circuit of 5%. Adani Enterprises has added Rs 78,107 crore to its market capitalisation in the last four sessions.

At the group level, the total addition to market cap stood at Rs 68,254 crore on Friday, while the total addition over the last four sessions was Rs 1.72 trillion.

Most Asian markets closed the week on a good note, thanks to commentary from the US that the Fed could go for a lower hike and possibly suspend the rate hike cycle this year. The KOSPI, Shanghai Composite, Hang Seng, and ASX200 all edged up marginally, while the Nikkei gained more than 1.5%.

“Bulk deals in the Adani Group stocks on March 2, attracting FPI buying, seem to have improved the market sentiment. Most global stocks inched higher on Friday and started March on a positive note as markets digested more signals on US monetary policy and positive Chinese economic data. Cyclical sectors are back in favour due to value-buying by investors,” said Deepak Jasani, head of retail research at HDFC Securities.

The Bank Nifty, too, surged 861.55 points or 2.13% to 41,251.35, with PSUs leading from the front. SBI, Bank of Baroda, and PNB were the major gainers, rising 5.11%, 4.83%, and 4.02%.

“A recovery was due in the banking sector as it was in a beaten-down state. Some short-covering also aided the recovery and the positive momentum is expected to continue ahead,” said Chandan Taparia, head (technical & derivatives research) at Motilal Oswal.

The Adani twins led gains in Nifty, followed by SBI. Among others, Airtel gained over 3%, while SBI Life, ITC and Tata Steel, Reliance Industries and IndusInd all closed with gains of over 2%.

FIIs were net buyers to the tune of Rs 246.24 crore, while DIIs pumped in Rs 2,089.92 crore.

Among the Sensex pack, SBI led with a gain of 5.11%, with Airtel climbing 3.3% and index heavyweight Reliance Industries rising 2.46%.

The BSE LargeCap index jumped 1.54%, while the MidCap and SmallCap indices rose 0.58% and 0.68%, respectively. Among sectoral indices, the BSE Bankex rose 2.13% and Financial Services 1.76%. The Power, Metal, and Realty indices also gained over 1%, with all sectoral indices ending in the green.

A total of 2,146 stocks advanced on the BSE, while 1,370 declined.