IT stocks rose 1%, extending gains from Thursday after the Fed held rates steady on Wednesday with a less hawkish-than-expected monetary policy stance. IT companies earn a significant share of their revenue from the U.S.
Auto also rose nearly 1%, led by Tata Motors , which added over 2% after reporting strong quarterly earnings, and was among the top Nifty 50 gainers.
“India stands out among emerging markets in terms of growth potential, from a risk-reward perspective,” said Mayuresh Joshi, head of equity research at William O’Neil India
The country will likely see “a lion’s share of foreign inflows into EMs if buying re-emerges after the Fed rate pause,” Joshi added.
Analysts said that the margin of safety is now relatively higher in large-caps than in small- and mid-caps.
The small- and mid-caps gained 1.2% and 0.75%, respectively, outperforming the blue-chips, aided by strong retail inflows.
Asian equities edged higher, with the MSCI Asia ex-Japan index rising 1.4%.
Among individual stocks, Container Corporation of India jumped 5% on posting a higher second-quarter profit driven by strong logistics demand.
Cement maker JK Lakshmi Cement climbed 6%, aided by stronger earnings and capacity addition at its Surat, Gujarat plant.
Drug maker Lupin jumped over 2% after announcing the launch of a drug used to control seizures, which has an estimated annual sales of $37 million in the U.S.
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