After registering a sharp gap down opening of around 3.5 per cent, the topline equity indices on the BSE and National Stock Exchange (NSE) registered a sharp recovery, erasing all its losses and ending with over 0.5 per cent gains on Friday.
The S&P BSE Sensex ended with gains of 242.52 points (0.72 per cent) at 33,780.89, while the Nifty 50 settled at 9,972.90, up 70.90 points (0.72 per cent). Both the indices had opened over 3 per cent lower earlier in the day, with Sensex crashing 1,190.27 points (3.55 per cent) to hit a low of 32,348.10 in the early deals. Similarly the broader Nifty too had slipped to an intraday low of 9,544.35, down 357.65 points (3.61 per cent).
The market recovery in the afternoon session of trade was led by a sharp rally in automobile shares and oil-to-telecom behemoth Reliance Industries (RIL).
On Thursday, the Sensex had crashed 708.68 points (2.07 per cent) to end at 33,538.37, while the Nifty settled below the 10,000-mark at 9,902.00, down 214.15 points (2.12 per cent).
Mahindra & Mahindra, Bajaj Finance, Hero MotoCorp, RIL, Titan Company and Bajaj Auto were the biggest gainers on Friday. On the other hand however, Oil and Natural Gas Corporation (ONGC), Tech Mahindra, Power Grid, Infosys, Kotak Mahindra Bank and Tata Consultancy Services (TCS) were the biggest losers of the day. (see heatmap below)
All sectoral indices except information technology (IT) and media ended higher. The Nifty Auto index was the standout performer of the day surging 2.92 per cent driven by M&M, Hero MotoCorp, TVS Motor Company and Bajaj Auto.
Apart from the auto index, Nifty PSU Bank index gained 0.84 per cent led by Canara Bank, Indian Overseas Bank and Punjab & Sind Bank. Likewise, the Nifty Financial Services index rose 0.76 per cent aided by Shriram Transport Finance Company, Cholamandalam Investment and Finance Company and Bajaj Finance.
Here’s how the sectoral indices performed:
In the broader market, the S&P BSE MidCap index settled at 12,600.15, up 119.57 points (0.96 per cent), while the S&P BSE SmallCap ended at 11,845.27, up 14.85 points (0.13 per cent).
“A volatile day came to an end with the Nifty recovering around 300 points from the day’s low. The major contributor to this gain was Reliance Industries which was also supported by technical bullishness. Markets tracked the positive opening in the European markets, post the sell-off seen yesterday. Except for IT, which was impacted by H-1B visa news, all the other sectors traded positive. Broader markets also participated in today’s gains. Currently, Markets seem to be driven by global cues and stock-specific action will be the norm,” Vinod Nair, Head of Research at Geojit Financial Services said in a statement after the markets ended.
The rupee settled 5 paise lower at 75.84 against the US dollar on Friday as volatile domestic equities and sustained foreign fund outflows weighed on investor sentiment, news agency PTI reported.
The rupee opened weak at 76.10 at the interbank forex market, but recouped most of the losses and finally ended the day at 75.84 against the US dollar, down 5 paise over its last close. the domestic currency had settled at 75.79 against the US dollar on Thursday. During the four-hour trading session, the local unit witnessed an intra-day high of 75.84 and a low of 76.10.
A slump in global shares extended to its fourth day running on Friday and oil tumbled over growing concerns that a resurgence of coronavirus infections could stunt the pace of recovery from lockdowns.
MSCI’s 49-country index of world stocks slipped 0.5 per cent to an 11-day low, while MSCI’s broadest index of Asia-Pacific shares outside Japan sank 1.3 per cent.
In Europe, the STOXX 600 Index swung between gains and losses after opening and was last down 0.6 per cent, extending a run of losses to five days in a row.
Oil futures slumped for a second consecutive trading session due to worries about weak global energy demand, which weighed on the currencies of oil producers and countries that rely on exporting commodities.
The Chinese yuan headed for its biggest daily decline in two weeks, underscoring investors’ risk-averse mood in Asia.
That was after the three major US stock indexes posted their worst day on Thursday since mid-March, when markets were sent into freefall by the abrupt economic lockdowns put in place to contain the pandemic.
– global market inputs by Reuters
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