Domestic equities join global rally

Mumbai, March 22: The domestic equities joined the global rally on Friday after the central banks in the US and the UK kept rates unchanged, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

After a subdued start, the Nifty edged higher to close with gains of 85 points at 22,097, while the Sensex advanced 190.75 points to finish at 72,832 on Friday.

The broader market too ended in the green. Barring IT, all sectors ended in green with auto, pharma, and realty stocks being top gainers, Khemka said.

The IT sector saw some selling after US technology major Accenture lowered its revenue forecast for FY24. Accenture revised its full-year revenue growth projection at 1 per cent to 3 per cent from 2 per cent to 5 per cent.

The markets opened weak, but soon gained momentum, including broader space amid positive cues.

"Next week being a truncated week and the derivatives' monthly expiry, we might see some volatility while Nifty is likely to consolidate at higher levels. Also, US GDP data and other key economic data would keep investors busy," Khemka said.

The domestic market swiftly rebounded from an initial downturn and maintained a positive trajectory throughout the day, said Vinod Nair, Head of Research, Geojit Financial Services.

The markets were buoyed by favourable global cues driven by dovish comments from the Bank of England and buying activity at lower levels in the wake of a recent sell-off, he said.

Additionally, the retreat of crude oil prices from recent highs contributed to the positive sentiment. While most sectors experienced gains, the IT remained in the red due to subdued guidance from Accenture, a major global IT player, Nair added.