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Friday, July 20, 2018

Oil push: Sensex sees biggest single-day gain since October

The Bombay Stock Exchange index had lost 517.63 points in previous two sessions.

Written by ENS Economic Bureau | Mumbai | Updated: January 23, 2016 1:44:42 am

BSE sensex

After a severe hammering earlier in the week, bulls on Friday staged a comeback, picking up on a rebound in oil prices and a strong lead from the markets in US, Europe and Asia on hopes of a fresh stimulus from the euro zone.

The Sensex surged over 473 points to 24,435.66, tracking gains in global markets. The index started strong by opening above the 24,000-mark at 24,122.06 and continued its march to touch the day’s high of 24,472.88 before ending 473.45 points or 1.98 per cent higher at 24,435.66, its biggest single-day gain since October 5. The market had lost 517.63 points in previous two sessions.

The 50-issue NSE Nifty after reclaiming 7,400, advanced to hit a high of 7,433.40 points, finally settling 145.65 points or 2 per cent higher at 7,422.45.

The rupee also regained 39 paise to 67.63 on fresh selling of dollars from banks and exporters on the back of recovery in equities. The recovery comes after a sharp sell-off earlier in the week. Hints from European Central Bank on Thursday that it might consider more monetary easing helped lift investors’ confidence.

In Japan, the Nikkei 225 jumped 5.9 per cent, after hitting at 15-month low the previous day. Markets in China also managed to recover some of the past days’ heavy losses. The mainland benchmark Shanghai Composite gained 1.3 per cent while Hong Kong’s Hang Seng ended the session 2.9 per cent higher. Europe’s main stock indices rose around 3 per cent after adding 2 per cent on Thursday. Given the recent steep declines, some were on track for their best weekly performance in two months.

Jayant Manglik, president, Retail Distribution, Religare Securities, said, “Nifty made a strong comeback on Friday and closed up by nearly two per cent, thanks to firm global cues and strength in rupee against the US dollar. It was a broad based recovery with auto and banking leading the pack alongside metal and energy counters. Besides, rebound in crude from its multi-years low, added to the positivity. The way Nifty closed on Friday, we expect rebound to continue in the coming trades as well with immediate hurdle at 7,550 mark.”

Dipen Shah, senior vice-president, Kotak Securities, said, “The markets were buoyed by the global markets, which traded higher. The weakness in Chinese economy and the falling crude prices have taken a toll on markets across the world, in the past couple of weeks. The resultant outflows of funds from India have impacted domestic markets also. The global scenario remains uncertain.”

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