Indian shares closed higher on Friday, boosted by beaten-down financial stocks and a jump in shares of Tata Group companies after the country’s top court ruled in favour of the autos-to-steel conglomerate.
The blue-chip NSE Nifty 50 index rose 1.27% to 14,507.30 and the benchmark S&P BSE Sensex gained 1.2% to 49,008.50. For the week, both the indexes fell more than 1%.
India’s top court backed the removal of Tata Group’s former chairman Cyrus Mistry, whose family firm owns an 18% stake in the group holding company, Tata Sons.
Shares of Tata Consultancy Services, Tata Motors, Tata Steel, Tata Consumer and Tata Power rose between 1% and 7% after the verdict.
“The volatility has been extreme over the past few weeks. There are some portfolio re-allocations and profit taking as the financial year is ending,” said Saurabh Jain, assistant vice president of research at SMC Global Securities in New Delhi.
Also boosting sentiment, world stocks gained on optimism about a global economic recovery and the week’s easing of global bond market yields.
“Markets are little bit afraid of rising infections and will react based on how the policy makers are handling the situation. But, the growth estimates are still strong for the year and corporate earnings are also expected do well,” he said.
India’s daily COVID-19 cases hit a five-month high on Thursday.
The Nifty bank index rose 0.9% on Friday, having fallen more than 6% in the past two weeks. The Nifty metals index gained 3.7%
Kalyan Jewellers’ shares fell as much as 16.2% at their market debut in Mumbai after the company saw tepid subscription in its initial public offering.
Reporting by Nallur Sethuraman in Bengaluru; Editing by Amy Caren Daniel