Asian stock futures were under pressure on Wednesday after a late, sharp sell-off on Wall Street and as oil prices slumped under pressure from swelling global supplies. However, Indian markets reversed the losses today after opening with a loss amid the fear among the investors regarding the probability of extension of the nationwide lockdown after April 14.
Markets regain momentum as Sensex climbs over 500 points
Around 9:32 am, BSE Sensex was up by 63.17 points or 0.21 percent at 30,130.38, while Nifty climbed 46.75 points to cross 8,800 points. After 18 minutes, Sensex surged further to rise over 500 points, while Nifty surpassed 8,900 points.
As many as 26 stocks out of 30 Sensex stocks were trading in positive territory, with M&M (Mahindra and Mahindra) as top gainer with a growth of 8 percent, followed by Axis Bank, HUL, and HDFC. On the contrary, TCS was the top Sensex loser, down 1.5 percent. ITC and Bajaj Finance were the other laggards on the pack.
All the sectoral indices were trading higher in Wednesday’s trade. Nifty Private Bank index was over 5 percent up led by gains in Bandhan Bank, RBL Bank, and IndusInd Bank. Similarly, the Nifty Auto index was also trading higher driven by Ashok Leyland, Bharat Forge, and Maruti Suzuki.
Defying global market cues, domestic equity markets turned positive in Wednesday’s trade led by gains in index heavyweights such as HDFC, HDFC Bank, ICICI Bank, RIL and HUL. S&P BSE Sensex jumped more than 1,000 points or 3.47 percent to trade at 31,110, while the broader Nifty 50 index was ruling at 9,084, up 292 points or 3.42 percent.
However, continuous volatility is expected in the market by the analyst as uncertainty prevails over the fate of numerous businesses that are shut due to the lockdown.
The evidence is mounting that March marked the start of a deep global recession. The breadth of the collapse is beginning to appear in the initial trickle of economic data across the world, revealing a cratering of trade, reined-in business investment, cowering consumers and surging unemployment that’s sparing few industries.
Talking about the global market, stock markets around the world remained cautious as US stock markets gave up gains after a firm rally. In the Asian market, too, stocks failed to see the sharp gains garnered in the previous two sessions. The oil market has also kept global trade on the edge due to wild swings seen over the past few days.
