Indian equity benchmarks extended gains to the third session in a row on Friday amid buying interest in financial, IT and FMCG shares, though selling pressure in metal shares played spoilsport. Strength across global markets — after the Fed hinted at a more tempered program of hikes in COVID-era interest rates — aided the sentiment on Dalal Street.

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NSE

The Sensex rose as much as 448.7 points or 0.8 percent to 54,627.1 during the session, and the Nifty50 touched 16,275.5 at the strongest level of the day, up 142.6 points or 0.9 percent from its previous close.

Investors gained Rs 6.3 lakh crore in wealth in three days as the market capitalisation of BSE-listed companies increased to Rs 251.6 lakh crore, according to provisional exchange data.

A total of 32 stocks in the Nifty50 basket rose for the day. Larsen & Toubro, PowerGrid, Tata Motors, NTPC, SBI Life, ICICI Bank, Adani Ports and Coal India — finishing the day around 2-5 percent higher — were the top gainers.

Hindalco, IndusInd, Bharat Petroleum, Eicher and HDFC Life were among the top laggards.

ICICI Bank, L&T, Infosys, Axis Bank and PowerGrid were the biggest contributors to the gain in both headline indices.

"The rally can fizzle out as correction in commodity prices and the tightening monetary policy are negative for global economy, limiting earnings growth and valuation expansion. The Q1 earnings season will be the prime focus of the market, in the near term," said Vinod Nair, Head of Research at Geojit Financial Services.

TCS shares finished lower as investors waited for India's largest IT company to report its financial results for the April-June period. The Nifty IT gave up much of its gain at the close after rising as much as 0.9 percent during the session.

Overall market breadth remained skewed towards the bulls, as 1,132 stocks rose and 937 fell on NSE.

Global markets

European markets began the day in the red ahead of the release of key jobs data from the world's largest economy due later in the day. The pan-European Stoxx 600 index dropped as much as 0.4 percent in early hours.

S&P 500 futures were down 0.2 percent, suggesting a lower start ahead on Wall Street.

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