Mumbai, July 21 (IANS) Healthy quarterly results from index heavyweights such as Reliance Industries (RIL) and Wipro buoyed the Indian equity markets on Friday.
According to market observers, ample liquidity and increase in off-take by retail investors following RIL’s robust numbers provided a perfect platform.
However, the session was marked with high volatility, with the Sensex swinging across nearly 250 points.
Both the key domestic equity indices fell around noon due to profit booking, especially in telecom and pharma stocks, but a recovery followed due to a strong performance by Reliance and Wipro.
This led the wider Nifty of the National Stock Exchange (NSE) to rise by 41.95 points, or 0.42 per cent, to close at 9,915.25 points.
The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,035.88 points, closed at 32,028.89 points — up 124.49 points, or 0.39 per cent, from the previous close at 31,904.40 points.
The Sensex touched a high of 32,062.23 points and a low of 31,808.93 points during intra-day trade.
“The Sensex ended above the psychologically important 32,000-mark after trading above and below that level in intra-day trade,” said Deepak Jasani, Head of Retail Research with HDFC Securities.
“Shares had fallen in intra-day trade due to negative global cues. However, gains in index pivotals RIL and IT major Wipro supported the bourses at lower levels.”
The RIL stock made a fresh nine-year high on the back of encouraging Q1 FY18 results and Annual General Meeting announcements by its Chairman Mukesh Ambani.
“Shares of RIL, a market heavyweight, soared 3.88 per cent to Rs 1,588 (at 3.07 p.m.), after the AGM wherein the company announced its JioPhone, a day after its impressive quarterly results on the back of higher petrochemical margins,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
“Shares of Wipro, India’s third largest IT firm, traded higher by 7.06 per cent to Rs 288 after the company on Thursday posted a 1.2 per cent rise in its consolidated net profit at Rs 2,076.7 crore for June quarter,” Desai said.
“Besides, the company’s board announced a share buyback proposal of Rs 11,000 crore entailing 34.3 crore shares at Rs 320 apiece.”
On the currency front, the rupee strengthened by 12 paise to 64.32 to a US dollar from its previous close at 64.43-44.
In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) purchased scrip worth Rs 12.90 crore, while domestic institutional investors (DIIs) bought stocks worth Rs 147.66 crore.