Sensex snaps 5-session selloff, climbs 642 points; NTPC gains over 4%

Equity benchmarks Sensex and Nifty regained footing on Friday after five days of losses as investors snapped up Reliance, FMCG and IT stocks even as tumbled amid concerns over rising US Treasury yields.

Participants shrugged off a spurt in Covid-19 cases in multiple states, though reimposition of localised lockdowns can pose a threat to economic recovery, traders said.

After opening with significant losses, Sensex took a U-turn to end 641.72 points or 1.30 per cent higher at 49,858.24.

On similar lines, the NSE Nifty surged 186.15 points or 1.28 per cent to finish at 14,744.

was the top gainer in the Sensex pack, rallying 4.58 per cent, followed by HUL, PowerGrid, Reliance Industries, ITC, UltraTech Cement and HCL Tech.

ALSO READ: Top asset manager Vanguard invests Rs 2,660 cr in at least 26 Indian stocks

Reliance Industries accounted for the lion’s share of the gains. On the other hand, L&T, Tech Mahindra, Bajaj Auto and Titan were among the laggards, slipping up to 1.20 per cent.

During the week, the Sensex sank 933.84 points or 1.83 per cent, while the Nifty declined 286.95 points or 1.90 per cent.

“The highly volatile domestic witnessed a smart recovery from its morning weakness and was swinging between gains and losses during the day owing to strong buying seen in FMCG, Pharma and Energy stocks. However, auto stocks were under pressure after the announcement of the government’s new scrapping policy.

“The unsettling pace of US bond yields and a surge in Covid cases worldwide resulted in the trading deep in red,” said Vinod Nair, Head of Research at Geojit Financial Services.

Sector-wise, BSE power, utilities, energy, FMCG, basic materials and metals indices rose up to 3.25 per cent, while BSE realty and capital goods closed with losses.

Broader BSE midcap and smallcap indices rallied up to 1.35 per cent.

World equities stayed on the back foot as investors fretted over elevated US bond yields and the slow pace of Covid-19 vaccine roll-outs in many countries.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a negative note.

Stock exchanges in Europe were also trading with losses in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 1.36 per cent higher at USD 64.14 per barrel.

The rupee ended just 1 paisa higher against the US dollar at 72.52.

Foreign institutional investors remained net buyers in the capital market as they bought shares worth Rs 1,258.47 crore on Thursday, according to exchange data.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link