NEW DELHI: Equity indices rebounded on Friday after four sessions of bruising losses, as policymakers across the world launched fresh efforts to stem the economic fallout of the coronavirus pandemic.
According to traders, investor sentiment turned positive on hopes of an economic stimulus to support the economy in wake of coronavirus (Covid-19) pandemic.
Prime Minister Narendra Modi on Thursday announced setting up of a task force under finance minister Nirmala Sitharaman which will take necessary actions “in the near future” after analysing the coronavirus pandemic situation.
Central banks in Europe, Japan, Australia and the United States announced new stimulus to help businesses battered by a near halt in economic activity due to the virus outbreak, and US Senate was debating a $1 trillion-plus package that would include direct financial help for Americans.
NSE Nifty finished 5.83% up at 8,746, while BSE sensex settled 5.75% higher at 29,916.
“The announcements by global central banks and stimulus measures are helping. Some short-covering is also happening,” said Mayuresh Joshi, head of equity research at William O’Neil & Co in India.
“But overall, how the pandemic will be contained still remains a cause of concern,” he added.
State-run Oil and Natural Gas Corp witnessed a 18.58% jump as oil prices bounced back.
The Nifty IT index jumped 8.52%, with shares of Infosys and Wipro surging as much as 9.68% each.
Shares in India’s largest private-sector lender HDFC Bank slid 1.3% after Bernstein downgraded the stock.
The virus, which originated in China, has spread quickly around the globe, claiming more than 10,000 lives and hammering economic activity.
The carnage in financial markets has taken India’s blue-chip Nifty 50 index 33% below its January 20 record intraday high, while India’s small-cap and mid-cap shares have fared no better, falling roughly 29% since the start of 2020.
The pandemic also threatens to chip away at India’s economic growth, already languishing at multi-year lows, as it forces more offices and factories into lockdown, pressuring corporate balance sheets.
BofA Securities on Thursday cut its June-quarter growth projections for the country by 90 basis points to 3.1% as it forecast a global recession.
Meanwhile, the rupee, which sunk to a new all-time low of 75.35 against the dollar on Thursday, was last weaker by 0.13%.
On a net basis, foreign institutional investors sold equities worth Rs 4,622.93 crore on Thursday, data available with stock exchanges showed.
In Video:Sensex jumps 1,628 points led by rally in FMCG, IT stocks
According to traders, investor sentiment turned positive on hopes of an economic stimulus to support the economy in wake of coronavirus (Covid-19) pandemic.
Prime Minister Narendra Modi on Thursday announced setting up of a task force under finance minister Nirmala Sitharaman which will take necessary actions “in the near future” after analysing the coronavirus pandemic situation.
Central banks in Europe, Japan, Australia and the United States announced new stimulus to help businesses battered by a near halt in economic activity due to the virus outbreak, and US Senate was debating a $1 trillion-plus package that would include direct financial help for Americans.
NSE Nifty finished 5.83% up at 8,746, while BSE sensex settled 5.75% higher at 29,916.
“The announcements by global central banks and stimulus measures are helping. Some short-covering is also happening,” said Mayuresh Joshi, head of equity research at William O’Neil & Co in India.
“But overall, how the pandemic will be contained still remains a cause of concern,” he added.
State-run Oil and Natural Gas Corp witnessed a 18.58% jump as oil prices bounced back.
The Nifty IT index jumped 8.52%, with shares of Infosys and Wipro surging as much as 9.68% each.
Shares in India’s largest private-sector lender HDFC Bank slid 1.3% after Bernstein downgraded the stock.
The virus, which originated in China, has spread quickly around the globe, claiming more than 10,000 lives and hammering economic activity.
The carnage in financial markets has taken India’s blue-chip Nifty 50 index 33% below its January 20 record intraday high, while India’s small-cap and mid-cap shares have fared no better, falling roughly 29% since the start of 2020.
The pandemic also threatens to chip away at India’s economic growth, already languishing at multi-year lows, as it forces more offices and factories into lockdown, pressuring corporate balance sheets.
BofA Securities on Thursday cut its June-quarter growth projections for the country by 90 basis points to 3.1% as it forecast a global recession.
Meanwhile, the rupee, which sunk to a new all-time low of 75.35 against the dollar on Thursday, was last weaker by 0.13%.
On a net basis, foreign institutional investors sold equities worth Rs 4,622.93 crore on Thursday, data available with stock exchanges showed.
In Video:Sensex jumps 1,628 points led by rally in FMCG, IT stocks
