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Indian equity benchmarks snapped 3-day losing streak with strong gains on Friday, tracking positive global cues. Gains in TECK, IT and Telecom stocks pushed the headline indices higher. Equity markets made a gap-up start, as sentiments got a boost with Niti Aayog Vice-Chairman Rajiv Kumar’s statement that Indian economy is expected to grow by more than 10 per cent in the current fiscal supported by a record kharif crop and bright rabi prospects. According to Kumar, significant increase in exports will also boost economic growth and employment generation. However, benchmarks erased some initial gains in morning deals, as some cautiousness came with a private report that India’s widening current account deficit (CAD), driven by the massive spike in commodity prices led by crude oil, is set to put pressure on the fragile recovery. Traders also remained on sidelines ahead of the macro economic data -- industrial production and inflation data -- scheduled to be announced later in the day.

Key gauges resumed their uptrend and were back near the day's high trajectory in afternoon deals, as buying spread across the sectors. Some optimism also came with Union Minister of State for Finance Bhagwat Karad’s statement that buoyancy in Goods and Services Tax (GST) collection in October shows the Indian economy, adversely affected by the coronavirus pandemic, is on the path to swift recovery. Indicating the impact of festive buying, GST collection remained above Rs 1 lakh crore for the fourth month in a row at over Rs 1.30 lakh crore in October. Domestic sentiments were positive after Reserve Bank of India Governor Shaktikanta Das said that RBI Retail Direct Scheme and Reserve Bank Integrated Ombudsman Scheme will provide further impetus to India's journey towards a more inclusive and responsive financial system. Traders took note of report that Commerce and Industry Minister Piyush Goyal said India is looking at reciprocal and equitable access to foreign markets through free trade agreements, which the country is negotiating with its trading partners.

On the global front, Asian markets ended mostly higher on Friday as cash-strapped Chinese property developer Evergrande averted a default and investors pinned hopes that the worst price hikes could be soon over. European markets were trading mostly in green as inflation worries faded to the background. Analysts say that the current wave of price spikes due to chronic worldwide supply constraints would not last long and inflationary pressure will eventually ease, rather than strengthen. Back home, on the sectoral front, power stocks were in focus with ICRA’s report stating that the power generation performance of the ICRA-monitored wind power portfolio of 3.2 gigawatt (GW) was adversely impacted during the financial year 2020-21 (FY21) primarily because of lower wind speeds.
Finally, the BSE Sensex rose 767.00 points or 1.28% to 60,686.69 and the CNX Nifty was up by 229.15 points or 1.28% to 18,102.75.           

The BSE Sensex touched high and low of 60,750.72 and 59,997.96, respectively and there were 25 stocks advancing against 5 stocks declining on the index.    

The broader indices ended in green; the BSE Mid cap index rose 0.57%, while Small cap index was up by 0.25%.

The top gaining sectoral indices on the BSE were TECK up by 2.03%, IT up by 2.00%, Telecom up by 1.69%, Realty up by 1.59% and Power up by 1.36%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Tech Mahindra up by 4.06%, HDFC up by 2.99%, Infosys up by 2.74%, Bajaj Finserv up by 2.22% and Bharti Airtel up by 2.02%. On the flip side, Bajaj Auto down by 3.04%, Tata Steel down by 0.93%, Axis Bank down by 0.36%, NTPC down by 0.29% and Power Grid Corporation down by 0.11% were the top losers. 

Meanwhile, expressing optimism over India’s economic growth, Niti Aayog Vice-Chairman Rajiv Kumar has said that the country’s economy is likely to grow by more than 10 per cent in the current fiscal (FY22) supported by a record kharif crop and bright rabi prospects. He added that this will boost rural demand and spur the revival in the manufacturing sector with improving capacity utilization. Though, he cautioned that inflation is emerging as a key risk to sustainable global economic recovery with supply chain constraints and rising energy prices.

According to Kumar, significant increase in exports will also boost economic growth and employment generation. He said ‘gradual pickup in contact-intensive services sector is further likely to support the growth momentum. India achieved the landmark milestone of administering 1 billion Covid-19 vaccine doses on 21 October’. He also noted that the rapid vaccination drive across the country will ensure that the risk of future wave is minimized.

The Niti Aayog Vice-Chairman pointed out that India sustained its pace of economic recovery in September 2021 as reflected by acceleration in manufacturing PMI at 53.7 (52.3 in August 2021) offset by a modest deceleration in services PMI at 55.2 (56.7 in August 2021). He said ‘Other key high frequency indicators -- power consumption, railway freight, GST collections, e-way bills, etc. -- also show continued pickup in economic activity’.

The CNX Nifty traded in a range of 18,123.00 and 17,905.90 and there were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 4.14%, Hindalco up by 3.12%, Wipro up by 2.99%, HDFC up by 2.69% and Infosys up by 2.67%. On the flip side, Bajaj Auto down by 2.93%, Tata Steel down by 0.99%, Hero MotoCorp down by 0.59%, Axis Bank down by 0.41% and NTPC down by 0.15% were the top losers.

European markets were trading mostly in green; France’s CAC increased 15.42 points or 0.22% to 7,074.97 and Germany’s DAX increased 15.01 points or 0.09% to 16,098.12, while UK’s FTSE 100 decreased 34.23 points or 0.46% to 7,349.95.

Asian markets ended mostly higher on Friday despite historic inflation surges in the United States and China. Chinese shares gained marginally on signs that the government could ease some tight curbs in the property sector after cash-strapped Chinese property developer Evergrande once again averted a destabilising default with a last-minute bond payment this week, while a major Communist Party meeting ended with a resolution paving the way for President Xi Jinping to potentially rule for life. Moreover, Japanese shares firmed on optimism over strong corporate earnings.

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