BENGALURU: Indian stocks edged higher on Friday, tracking gains in global stocks after authorities took a series of measures to prop up the global banking system and stoke risk appetite.
The Nifty 50 gained 0.67% to close at 17,100.05, while the S&P BSE Sensex gained 0.62% to end at 57,989.90.
However, both indexes lost about 2% for the week, their biggest declines in a month, largely due to sharp declines earlier in the week following the collapse of Silicon Valley Bank and Signature Bank.
The fallout from those shutdowns threatened to spread more widely, with regional US lender First Republic Bank and Swiss lender Credit Suisse becoming new hotspots before they helped stave off the crisis and boost global funds.
“The measures will inspire confidence in finance in the near term,” said Deepan Mehta, director of Elixir Equities, but warned of a “potential financial contagion effect”.
However, Bank of India shares rose more than 1% on the day. Overall, nine of the 13 major sectoral indices advanced, with information technology (IT) stocks also up 1%.
US regional banks account for around 2%-3% of TCS and Infosys’ revenues, the highest in the IT sector, says JP Morgan.
Further, investors expect the Federal Reserve to ease rate hikes, which has led to SVB’s collapse, and that bodes well for spending among the IT firms’ US clients.
“The Fed will have to manage a delicate balancing act between price stability and financial stability, with a potential hike of 25 basis points next week,” said Aishwarya Dadhic, fund manager at Ambit Asset Management.
TCS shares fell 0.18% after the surprise resignation of CEO Rajesh Gopinathan, although analysts expect a smooth transition.
Index heavyweights HDFC and HDFC Bank rose around 1.3% each after reports that the National Company Law Tribunal had approved their merger.
The Nifty 50 gained 0.67% to close at 17,100.05, while the S&P BSE Sensex gained 0.62% to end at 57,989.90.
However, both indexes lost about 2% for the week, their biggest declines in a month, largely due to sharp declines earlier in the week following the collapse of Silicon Valley Bank and Signature Bank.
The fallout from those shutdowns threatened to spread more widely, with regional US lender First Republic Bank and Swiss lender Credit Suisse becoming new hotspots before they helped stave off the crisis and boost global funds.
“The measures will inspire confidence in finance in the near term,” said Deepan Mehta, director of Elixir Equities, but warned of a “potential financial contagion effect”.
However, Bank of India shares rose more than 1% on the day. Overall, nine of the 13 major sectoral indices advanced, with information technology (IT) stocks also up 1%.
US regional banks account for around 2%-3% of TCS and Infosys’ revenues, the highest in the IT sector, says JP Morgan.
Further, investors expect the Federal Reserve to ease rate hikes, which has led to SVB’s collapse, and that bodes well for spending among the IT firms’ US clients.
“The Fed will have to manage a delicate balancing act between price stability and financial stability, with a potential hike of 25 basis points next week,” said Aishwarya Dadhic, fund manager at Ambit Asset Management.
TCS shares fell 0.18% after the surprise resignation of CEO Rajesh Gopinathan, although analysts expect a smooth transition.
Index heavyweights HDFC and HDFC Bank rose around 1.3% each after reports that the National Company Law Tribunal had approved their merger.
