Sensex recovers from day’s low, ends Friday session with 1% gain 

Mumbai: In a highly volatile trading session, the BSE Sensex recovered more than 2,000 points from the day’s low and the NSE Nifty50 recouped over 600 points on Friday.

Analysts stated that investors saw a value-picking opportunity after November CPI inflation moderated to 5.48 percent in November 2024, down from 6.21 percent in October. 

 At close, the Sensex was at 82,133.12, up 843.16 points, or 1.04 percent. The Nifty50 settled at 24,768.30, up 219.60 points, or 0.89 percent. In the broader market, Nifty Midcap 100 and Nifty Smallcap 100 closed with minor cuts.

 "Markets quickly bounced back from its weak opening and surged ahead in intra-day trades as moderating inflation and uptick in IIP growth numbers enthused investors to resort to value buying in banking, IT and telecom stocks,” said Prashanth Tapse, Senior VP (Research), Mehta Equities. 

 Out of 50 constituents of Nifty50, 41 advanced on Friday. Bharti Airtel, ITC, Kotak Mahindra Bank, HUL, and UltraTech Cement gained between 2 -4.4 percent. 

 Ajit Mishra – SVP of Research, Religare Broking, said that Nifty's strong close near the day’s high suggests the potential for further upside, with confirmation expected above the 24,800 level.

“We maintain a positive outlook on the IT and banking sectors, recommending selective picks from others. Participants should align their strategies accordingly, prioritising risk management to navigate market volatility effectively,” added Mishra. 

Foreign institutional investors (FIIs) also participated in Friday’s rally as they net purchased shares worth Rs 2,335 crore, as per NSE data. 

Going forward, the market will now keep an eye on next week’s US Federal Reserve meeting and domestic WPI inflation and PMI data. Krishna Appala, senior Research Analyst, Capitalmind Research, said that while global tensions from the Middle East, China, and US elections are subsiding, attention now shifts to the upcoming third quarter (Q3) results.