Markets rebounded sharply on Friday following a strong rally in metal stocks. Though the momentum in the market slowed down in the second half, benchmark indices extended early gains through the day and ended in the green owing to positive global cues.

Major global markets including the US (overnight), Australia and Japan were positive.

The BSE Sensex after surging over 700 points in intra-day, closed 49,008.50, up 568.38 points or 1.17 per cent. It hit an intraday high of 49,234.66 and a low of 48,699.91. The Nifty 50, which had briefly dipped below the 14500-mark, closed at 14,507.30, up 182.40 or 1.27 points. It hit an intraday high of 14,572.90 and a low of 14,414.25.

As many as 1,658 shares have advanced on the BSE, 1,299 declined and 177 remain unchanged. In all, 124 scrips hit their 52-week high and 64 52-week lows. Despite the strong recovery, 329 stocks have hit the lower circuit as against 217 stocks that hit the upper circuit.

Binod Modi, Head Strategy at Reliance Securities, said: “Domestic equities witnessed a strong rebound mainly supported by strong cues from global markets.”

“While a sharp spike in Coronavirus cases in various parts of the country made investors jittery in the last couple of weeks, contraction in bond yields and crude prices in this week offered comforts to investors in domestic equities. However, strengthening the dollar index (already gained around 1.5 per cent this week so far) can aggravate investors’ concern in emerging markets including India,” added Modi.

Court ruling Tata stocks

The Supreme Court on Friday ruled in favour of multi-billion dollar salt-to-software conglomerate, Tata Sons Pvt Ltd, by setting aside a National Company Law Appellate Tribunal (NCLAT) decision to re-instate minority shareholder Shapoorji Pallonji group's scion, Cyrus Mistry, as its chairman. This has positively impacted the stocks of Tata Group.

Tata Steel was the biggest gainer, rising 6.05 per cent, followed by Indian Hotels, Tinplate, Tata Steel BSL, Tata Motors, Tata Power, Nelco, Tata Communication, Tata Coffee, Titan and Tata Chemicals that gained 3-6 per cent.

Among the Nifty 50 stocks, Tata Steel and Tata Motors were the top gainers along with Bajaj Finserv, Titan and Asian Paints. However, Powergrid, UPL, Eicher Motors, ITC and IndusInd Bank were top laggards.

Metal stocks witness sharp recovery

All sectoral indices closed in the green with the Nifty Metal recording the highest gains. The Nifty Metal was up 3.68 per cent. It was followed by Nifty Realty and Nifty Financial Services which gained 1.69 per cent and 1.57 per cent respectively.

Broader indices outperform

All broader indices too were in the green.

The broader indices overcame the selling pressure, outperforming the benchmark indices today. The Nifty Midcap 50 was up 1.99 at closing while the Nifty Smallcap 50 was up 1.02 per cent. The S&P BSE Midcap was up 1.66 while the S&P BSE Smallcap was up 1.08 per cent.

Volatility index slumps

As the market turned positive, the volatility index India Vix was down 9.02 per cent to 20.65.

“All key sectoral indices ended in green with Metals, Financials and FMCG and Auto indices recording strong recovery. Notably, a strong buying was seen in midcap and small cap stocks, which outperformed broader indices. Further, volatility index softened by ~8 per cent today offering some comforts to investors. It clearly appeared that investors today indulged in bargain trading after a sharp fall in market in recent period and bought quality stocks,” said Modi.

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