The benchmark equity indices rose for the second consecutive day amidst a strong global trend with domestic optimism ahead of the polls in Gujarat acting as a catalyst. The state will see its first phase of polling on Saturday with most exit polls predicting a win for BJP.
The 30-share Sensex gained 301.09 points or 0.91% to close at 33,250.30. The benchmark index has gained more than 650 points in the last two trading sessions following the Reserve Bank of India (RBI) decision of keeping key rates unchanged while announcing that the recapitalisation plan for banks would be released soon.
The broader Nifty of the National Stock Exchange (NSE) closed at 10,265.65, up 98.95 points or 0.97%. Elsewhere in Asia, most of the leading indices like Hang Seng, Nikkei and Kospi also gained on Friday.
In India, the overall market breadth was also positive with 1,584 stocks gaining ground on BSE, as against 1,116 declines. All the sectoral indices also ended in the green.
'Constructive on Indian equities'
In its latest report, Nomura has said that it is constructive on Indian equities for 2018 and expects a 17% return. The global financial major is of the view that government reforms like the goods and services tax, implementation of the bankruptcy code and a push on infrastructure will have a positive impact on growth and valuation multiples.
Among the Sensex pack, 25 stocks advanced with Sun Pharmaceutical, Tata Motors, Bharti Airtel, Hindustan Unilever and ITC all gaining more than 2% each.
Meanwhile, Sameet Chavan, Chief Analyst - Technical and Derivatives, Angel Broking, is of the view that investors need to be cautious in the near-term as the current upswing looks like a relief rally and could face selling pressure at higher levels.
Shares of Unitech were in the focus as the government moved the National Company Law Tribunal (NCLT) to take control of the real estate company. Unitech shares gained nearly 20% to close at Rs.7.29.
