Despite a drop of as much as 0.8 per cent from the day’s high following news of a controversial press meet held by four senior judges of the Supreme Court to highlight their discomfort with the internal functioning of the apex body, the benchmark indices recovered and ended the session at a fresh record high. The Sensex ended the session up 88.90 points at 34,592.39, a rise of 0.26 per cent, while the Nifty rose by 30.05 points or 0.28 per cent to end the session at 10,681.25.
This was the sixth weekly gain in a row for the benchmarks. During the week, the Sensex gained 438.54 points, or 1.28 per cent, while the Nifty rose 122.40 points, or 1.15 per cent.
The Sensex fell by more than 0.8 per cent from the day’s high after four judges of the Supreme Court raised questions on the functioning of the apex court. However, buying momentum resumed soon, which propelled the markets to record levels.
Market participants attributed continuous buying by domestic institutional investors and expectation of recovery in this earnings season for this rise. Domestic institutions bought shares worth Rs 1,446 crore in the past 10 sessions.
However, experts warned that market participants are observing the situation to see how it evolves, and if their expectation of a quick resolution is not met, the tide could turn. “Right now, investors are watching this they are not reacting to this. Only if this event snowballs into something major will investments get impacted. But right now they are in a watchful mood. That’s why you saw the markets recover the entire losses,” said a market participant on the condition of anonymity. Most market experts refused to go on record with their views as the subject pertained to the judicial system in the country.
Eleven of the 19 sectoral indices of BSE advanced. Banking, energy and industrial stocks led the rise. ICICI Bank, Maruti, and ONGC were the best-performing stocks in the Sensex and rose by 2.63 per cent,1.27 per cent and 1.26 per cent, respectively.
TCS slipped 0.56 per cent after the IT major on Thursday reported a 3.6 per cent drop in net profit for the December quarter at Rs 6,531 crore.
However, Infosys, which announced its results after market hours on Friday, posted a 38.3 per cent growth in consolidated net profit to Rs 5,129 crore for the October-December quarter of 2017-18. (With Inputs from FE, PTI)