Indian stock benchmarks rose Friday to extend earnings for the sixth straight session, braving the sell-off of broader global risk assets, driven by fears of a sharp global economic slowdown due to rising borrowing costs worldwide.
The 30-share BSE Sensex index rose 104.25 points, or 0.18 percent, to end at 59,307.15, and the broader NSE Nifty-50 index emitted 12.35 points, or 0.07 percent, higher and closed at 17,576.30.
Both the leading exchanges, the BSE and the NSE, will hold a special hour-long muhurat trading session on Monday, marking the start of a ‘New Samvat 2079’ – the Hindu calendar year beginning on Diwali.
ICICI Bank, Hindustan Unilever, Kotak Mahindra Bank, Nestle, Titan and UltraTech Cement were among the other notable gains from the 30-stock package.
However, the laggards were Larsen & Toubro, IndusInd Bank, Bajaj Finance and Bajaj Finserv.
On the NSE, Axis Bank stock rose about 10 percent to a record high of Rs 906 per share on Friday after reporting solid earnings growth on Thursday.
Both domestic benchmarks have risen – including reversal of losses in the morning sessions – despite weak investor sentiment globally for risky assets.
Momentum was further boosted by foreign institutional investors (FIIs) who brought net buyers to the market after many sessions on Thursday.
That even as global stocks fell and government bond yields rose, traders bet the Federal Reserve would keep raising rates until inflation could be kept under control. Investors also analyzed recent earnings reports to gauge how well companies were adapting to various challenges.
An indicator of Asian stocks pointed to the second week of declines. The US is reportedly investigating new export regulations that would restrict China’s access to advanced computing technologies, causing shares of several Chinese chip-related companies to plummet.
European equities fell and Wall Street futures meters pointed to a lower open.
Shares of Twitter plunged as much as 16 percent in premarket trading after news that US government officials were debating whether the US should evaluate some of Elon Musk’s companies for national security reasons, including the offer for the social media business.
As traders anticipated a higher peak Fed yield, 10-year US bond yields rose to their highest levels since 2007, boosting the dollar. More intervention may be needed to stabilize the Japanese currency, amid concerns that the yen has fallen past the widely viewed 150 to a dollar barrier.
“The move for US Treasuries is reminiscent of 2007, and we can see market pressures continuing until yields reach levels last seen just before the 2008 crisis, when the 2-year peak peaked at just over 5 percent and the 10-year close to 5.30 percent,” Rand Merchant Bank economists said in a note Friday, according to Bloomberg.
“With returns at current levels, it’s not surprising to see the greenback remaining supported — putting pressure on most risky assets — while stock market volatility remains high.”