The S&P BSE 200 index closed slightly higher on Friday but gains were capped by heavy losses in energy stocks. The benchmark index rose 0.06% to finish at 9,638.97. The index traded in a narrow range throughout the session between 9,601.39 and 9,649.68.
Vodafone Shines as Top Gainer
Vodafone Idea was the top gainer in the index, surging over 20% to Rs. 16.02. The stock extended gains after the government recently approved a relief package for the telecom sector.
Indus Towers jumped 7.18% after the company’s board approved the merger of Indus Towers Limited with Bharti Infratel Limited. Emami, 3M India, and Samvardhana Motherson International were among the other prominent gainers.
Energy Stocks Drag Index Lower
On the flip side, energy stocks were the major drag on the index due to a sharp fall in crude oil prices globally.
Hindustan Petroleum Corporation plummeted 4.56% to Rs. 398.75 while Bharat Petroleum Corporation tanked 3.33% to Rs. 450.55. Oil India slumped 2.70% to Rs. 372.35 and Indian Oil Corporation dropped 2.63% to Rs. 129.80.
With crude oil prices declining over 7% during the week, energy stocks have been witnessing relentless selling pressure. ONGC, BPCL, IOC, and HPCL lost between 1-5% each in today’s session.
Cautious Trades Ahead of Derivatives Expiry
Trading activity remained subdued during the session as traders preferred to stay on the sidelines ahead of the December futures & options expiry due next week.
The overall trend was cautious as December derivatives expiry approaches amid the holiday season. Traders expect the Nifty and Sensex to witness volatile swings next week as well.
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Outlook for Next Week
Market experts believe the Nifty could face resistance around 9,700-9,750 levels going ahead due to expensive valuations. Investors need to be selective in stock picking as the upside looks capped.
With no major domestic events lined up, cues from global markets, foreign fund flows and crude oil price movement will dictate market trend next week. Market participants will closely monitor developments around the US-China trade negotiations.
Overall, analysts expect the market to trade in a range-bound manner but foresee volatility to increase ahead of the derivatives expiry. Stock specific action will continue as the earnings season kicks off from January.