Markets claw back lost ground amid global rebound; post weekly gains

PTI, May 20, 2022, 5:13 PM IST

The Sensex surged over 1,500 points while the Nifty reclaimed the 16,000-mark on Friday, reversing the previous session’s sharp decline in tandem with a recovery across global markets as investors resorted to bargain-hunting.

Snapping its two-day losing run, the BSE Sensex rallied 1,534.16 points or 2.91 per cent to close at 54,326.39. This was its biggest single-day jump in over three months.

Similarly, the broader NSE Nifty soared 456.75 points or 2.89 per cent to 16,266.15.

All the 30 Sensex firms ended in the green.

Dr Reddy’s topped the gainers’ chart with a jump of 8.10 per cent, followed by index heavyweight Reliance Industries which zoomed 5.77 per cent.

Nestle India, Tata Steel, Larsen & Toubro, Axis Bank, Sun Pharma and IndusInd Bank were among the other major winners.

”The market displayed a confident yet calm rally throughout the day, supported by fortified global markets, especially the Asian market. The Chinese central bank cut a key interest rate to support growth, injecting optimism into emerging markets.

”With concerns over an economic slowdown and rate hikes across the globe, investors will continue to invest with caution. Value stocks should do well during this consolidation period,” said Vinod Nair, Head of Research at Geojit Financial Services.

On a weekly basis, the Sensex climbed 1,532.77 points or 2.90 per cent, while the Nifty gained 484 points or 3.06 per cent.

”Markets have been seeing a roller-coaster ride and the key is to manage the overnight risk. Going ahead, global cues, the last leg of earnings and updates on the Russia-Ukraine war will be on the radar. We reiterate our advice to focus more on managing risk and preferring hedged bets,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

In the broader market, the BSE smallcap gauge jumped 2.13 per cent and the midcap index spurted 1.98 per cent.

As many as 2,497 stocks advanced, while 777 declined and 144 remained unchanged.

All BSE sectoral indices closed higher, with realty jumping 4.22 per cent, followed by metal (3.75 per cent), capital goods (3.14 per cent), industrials (3.05 per cent), healthcare (3.04 per cent) and energy (2.97 per cent).

Asian markets jumped after China slashed its five-year loan prime rate (LPR) — a key lending benchmark — by 15 basis points to spur demand.

Bourses in Europe too were trading with significant gains in the afternoon session. Stock markets in the US had ended lower on Thursday.

International oil benchmark Brent crude dipped 0.11 per cent to USD 111.9 per barrel.

The rupee inched 3 paise higher to close at 77.53 (provisional) against US dollar on Friday.

Foreign institutional investors remained in selling mode, offloading shares worth a net Rs 4,899.92 crore on Thursday, as per stock exchange data.