Sensex, Nifty bounce back as US markets make a U-turn


The BSE Sensex and NSE Nifty, India’s benchmark equity indices, witnessed a sharp recovery from a fall on Friday. The Sensex gained 1,508 points and the Nifty rose by 452 points in intraday trade. It was near a 5 per cent recovery from the day’s low.

The Sensex ended the day with gains of 242 points or 0.72 per cent at 33,780. The Nifty index rose 70 points or 0.72 per cent to close at 9,972. The Bank Nifty index was up 129 points or 0.63 per cent at 20,654.

The recovery was due to the US markets as index futures of both the Dow and Nasdaq were trading higher by nearly 2 per cent when Indian markets were open. The recovery for the Bank Nifty index was a stunning 1,221 points, to close at 20,654.

The Federal Reserve has decided to keep interest rates near zero till 2022, which means an abundance of liquidity in the global financial markets, which should cushion equity markets from crashing, experts say.

 

 

The market recovery on Friday was on the back of massive buying in the cash segment by domestic institutional investors (DIIs) and a bout of short covering in the derivative segment by both domestic and foreign traders. DIIs bought stocks worth ₹1,945 crore in the cash segment. Foreign portfolio investors (FPIs) sold stocks worth ₹1,311 crore in the cash segment. Derivative trading data was not put out by stock exchanges till the time of going to press.

“A technical sell-off for the Indian markets that was impending after the recent swift rally is now a thing of the past. It factored in even the worst-case scenario for the Sensex and Nifty. The bull run may go on now,” said Rohit Srivastava, strategist, Indiacharts.

“Today’s recovery indicates that the Nifty and Sensex could rally more on a near-term basis,” said Arun Kumar, Market Strategist, Reliance Securities.

Published on


June 12, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *