On Friday, benchmark stock indices opened in the green, driven by gains in auto stocks and a robust performance from Bharat Petroleum after its Q4 results. The S&P BSE Sensex added 523.61 points, rising by 0.4% to reach 72,927.78, while the NSE Nifty50 gained 151.15 points, climbing 0.69% to reach 22,108.65 points as of 10 AM.
Bharat Petroleum Corp Ltd (BPCL) saw its shares rise by 4% despite falling short of fourth-quarter profit expectations. The company's shares received a boost from its announcement of issuing bonus shares. The auto sector also experienced a 0.9% rise, with Bajaj Auto and Hero MotoCorp leading the gains with a jump of 2%.
Although the Sensex and Nifty were up for the day, they each witnessed around a 1.75% drop throughout the week. The Nifty remains 2% away from erasing its gains for the year, while the Sensex has seen less than a percent increase so far in 2024.
According to Deepak Jasani, head of retail research at HDFC Securities, foreign institutional investors (FIIs) are reducing their positions ahead of upcoming election phases and vote count, contributing to market volatility. In May, foreign portfolio investors (FPIs) sold Indian shares worth $1.2 billion, marking the highest FPI sale since January.
Market technicals suggest weakness, with the Nifty50 slipping below its 100-day moving average for the first time in six months on Thursday before recovering on Friday. Ten out of thirteen major sectors saw gains on Friday, with energy stocks up by 1%, led by a 3% increase in Bharat Petroleum Corporation Limited following its March-quarter results.
Despite missing profit estimates, Jefferies expects BPCL to demonstrate better profitability than peers in fiscal years 2025 and 2026 due to likely margin improvement across refining and marketing segments, reiterating its "buy" recommendation. BPCL emerged as the top Nifty 50 gainer for the day. Additionally, consumer stocks rose by 1.4%, led by a 2.5% increase in ITC.
