The benchmark indices – Sensex and Nifty – registered their biggest intraday gain on Friday in more than two years as rupee strengthened slightly and global crude oil prices plunged, fuelling confidence in market. While BSE Sensex climbed 2.15 percent (732.4 points) at 34,733.6, NSE Nifty rose 2.32 percent (237.8 points) at 10,473. Both benchmark indices marked their biggest gain since May 25, 2016.
These are the first weekly gain in six weeks for the stock markets. The markets fell nearly 6 percent last week. On the other hand, rupee strengthened by 55 paise to settle at 73.57 against the US dollar on Friday, marking its biggest gain in over three weeks.
Meanwhile, stock markets worldwide rebounded on Friday after a multi-day sell-off but still registered their biggest weekly losses in months, while U.S. Treasury yields rose and the dollar held its gains.
Wall Street snapped a six-day losing streak as investors looked for bargains even as worries about U.S.-China trade tensions lingered. Technology shares led the gains. “People are starting to buy in, thinking the higher-flying growth stocks were oversold,” Reuters reported citing Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
But until the United States and China reach a trade deal, the rebound could be vulnerable as investors are anxious about the impact of tariffs on corporate profits. “If earnings come out good I think this rally is sustainable if we don’t get negative trade news,” she added.