Domestic share markets rose in a choppy trading session on Friday as banks and tech stocks recovered from a selloff in the previous session, but gains were capped by weak sentiment in global markets due to rising COVID-19 cases in Europe and the US. The NSE Nifty 50 index was up 0.67 per cent at 11,758.20 by 11:04 am, while the S&P BSE Sensex was up 0.64 per cent at 39,983.94.
“It has been a market where any fall has been bought into strongly and the bounce has been even stronger… valuations could remain elevated as market is expecting earnings to catch up,” said Siddhartha Khemka, head of retail research at Motilal Oswal.
Before the slide on Thursday, banks and IT stocks had fuelled gains in equities for 10 straight sessions.
The Nifty Bank index, which ended 3.4 per cent lower in the previous session, rose 1 per cent on Friday morning, led by a 1.1 per cent rise in HDFC Bank and 1.4 per cent gain in IndusInd Bank.
The Nifty IT index, up 8.6 per cent so far this month, gained as much as 1.6 per cent in early trading and is now up 0.4 per cent.
The Nifty Energy index was up 0.6 per cent, with state-run refiner Bharat Petroleum Corporation adding 2.7 per cent to be the top gainer on the Nifty 50.
Shares of Tata Group firms Titan Company, Tata Steel and Tata Consultancy Services rose between 0.7 per cent and 2.1 per cent.
The conglomerate had on Thursday said it had not received any formal proposal from the Shapoorji Pallonji Group to separate its interests.