Markets reverse early rout on RIL spurt; end lower for the week

Sensex rallied in early trade led by gains in HDFC twins, ITC and Reliance Industries amid positive cues from global markets.
Sensex rallied

Mumbai, Jun 12 (PTI)
 Benchmark indices rebounded from a massive selloff in early trade to finish with smart gains on Friday, supported by a rally in Reliance Industries and positive opening of European markets.

After plunging 1,190.27 points to hit a low of 32,348.10 in opening trade, the 30-share BSE Sensex clawed back lost ground to close at 33,780.89, up 242.52 points, or 0.72 per cent.

Similarly, the NSE Nifty rose 70.90 points, or 0.72 per cent, to end at 9,972.90.

During the week, the Sensex declined 506.35 points or 1.47 per cent, while the Nifty fell 169.25 points or 1.66 per cent.

Asian markets tanked after the Dow Jones suffered its biggest one-day drop since March on concerns over a second wave of coronavirus cases in the US.

However, bargain hunting in banking and finance stocks, coupled with positive cues from Europe, supported the domestic bourses, traders said.

M&M was the top gainer in the Sensex pack, climbing 7.22 per cent, followed by Bajaj Finance, Hero MotoCorp, Reliance Industries (RIL), Titan and Bajaj Auto.

On the other hand, ONGC, Tech Mahindra, PowerGrid, Infosys and Kotak Bank were among the major laggards, dropping up to 3.39 per cent.

IT stocks came under selling pressure following reports that US President Donald Trump is considering suspending a number of employment visas, including H-1B — the most sought-after among Indian IT firms — in view of the massive unemployment in America due to the coronavirus pandemic.

“A volatile day came to an end with the Nifty recovering around 300 points from the day’s low. The major contributor to this gain was Reliance Industries which was also supported by technical bullishness. Markets tracked the positive opening in the European markets, post the sell-off seen yesterday.

“Except for IT, which was impacted by H-1B visa news, all the other sectors traded positive. Broader markets also participated in today’s gains. Currently, markets seem to be driven by global cues and stock specific action will be the norm,” said Vinod Nair, Head of Research at Geojit Financial Services.

BSE auto, energy, telecom, realty and basic materials indices rallied up to 2.91 per cent, while IT, teck and power shed up to 1.49 per cent. Broader BSE mid-cap and small-cap indices gained up to 0.96 per cent.

In rest of Asia, exchanges in Shanghai, Hong Kong, Tokyo and Seoul finished up to 2 per cent lower.

However, bourses in Paris, Frankfurt and London rallied up to 2 per cent in early deals.

International oil benchmark Brent crude futures inched up 0.83 per cent to USD 38.86 per barrel.

Meanwhile, the number of coronavirus cases across the world crossed 75 lakh and the death toll has topped 4.21 lakh.

In India, the death toll due to COVID-19 rose to 8,498 and the number of infections rose to 2.97 lakh, according to the health ministry.


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