FINAL TRADE: Indices snap three-day losing streak; Sensex up 298 pts, Nifty ends at 18,203

Snapping a three-day losing streak, the benchmark indices settled with over 0.4 per cent gains on May 19, Friday amid buying in technology, realty and services counters. The S&P BSE Sensex ended at 61,729.68, up 0.48 per cent while the NSE's Nifty ended at 18,203.40, up 0.41 per cent. Infosys, ICICI Bank, Reliance Industries (RIL), Tata Motors, and Axis Bank were the top contributors to the Sensex's gains. Tata Motors (up over 3 per cent) was the biggest gainer on the index, followed by Tech Mahindra and Infosys. On the flip side, NTPC was the top loser.

"The domestic market, though experienced a lack of decisive direction, closed the day on a positive note. The optimism in the US market was fuelled by progress in debt ceiling talks and stronger-than-expected jobless claims. However, the prospect of a stronger US economy suggests that the Federal Reserve may keep policy rates elevated for an extended duration," said Vinod Nair, Head of Research at Geojit Financial Services.

BUZZING STOCKS

Shares of asset management companies (AMCs) came under pressure during Friday’s session (May 19) after the market regulator SEBI, through a consultation paper, proposed a uniform total expense ratio for mutual fund houses. Aditya Birla Sun Life AMC slipped over 1 per cent while HDFC Asset Management Company ended 0.31 per cent lower. The Ramco Cements ended nearly 8 per cent higher at Rs 843.30 on the BSE. The company released its March quarter numbers on Thursday, May 18. Gland Pharma shares nosedived on Friday, a day after the Hyderabad-based generic injectable manufacturer reported a 52 per cent fall in operating profit to Rs 168 crore for the quarter ended March 2023. Gland Pharma stock ended on Friday at Rs 1,065.6 apiece on the bourses, locked in the 20 per cent lower circuit.

WEEKLY OUTLOOK

Domestic equity markets corrected a bit this week. The Nifty50 index and BSE-30 index were down by nearly 1 per cent this week. Global markets were mixed during the week amid concerns about the US debt ceiling. On the sectoral front, most indices declined during the week. However, BSE IT and BSE Realty posted gains this week. India’s April macro factors have seen improvement with record GST collection, improved PMI numbers, trade deficit narrowing to near two-year lows, and sharp softening in headline and core inflation. FIIs have been net buyers of Indian equities in recent weeks, notes Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

"The weak global growth outlook continues to persist, even as inflation witnessed moderation. Stocks-specific action will continue as companies continue to declare their Q4FY23 results. Going ahead, markets will also keep a tab on monsoon movement. In the latest update, the IMD expects the onset of monsoon over Kerala is likely to be slightly delayed," the analyst adds.