Sensex, Nifty End Volatile Session Higher Led By Auto, Energy Stocks

Domestic stock markets recovered all of the day’s losses in the last hour of trade on Friday, as buying interest in automobile and energy stocks rescued the markets. The S&P BSE Sensex index rebounded as much as 1,508.17 points from the weakest level recorded during the session to touch 33,856.27 on the upside. The broader NSE Nifty 50 benchmark jumped to as high as 9,996.05 in late afternoon deals, having tumbled more than 3 per cent to hit 9,544.35 earlier compared to its previous close of 9,902.00.

The Sensex ended 242.52 points – or 0.72 per cent – higher at 33,780.89 and the Nifty settled at 9,958.70, up 56.70 points – or 0.57 per cent – from its previous close. 

Analysts awaited macroeconomic data due at 5:30 pm for more clarity on the economic fallout from the coronavirus pandemic.

“Fundamentals don’t support the levels markets have achieved in last few sessions. Businesses are still not able to functions normally,” said AK Prabhakar, head of research at IDBI Capital. He said the Nifty is expected to correct to below 9,000 levels next week, and even 8,800 in the following week.

Consumer inflation – or the rate of increase in retail prices – is likely to have moderated to a six-month low of 5.50 per cent in May, according to a poll of 35 economists by news agency Reuters.

Equities in other Asian markets followed Wall Street, which saw its worst day since mid-March, with MSCI’s broadest index of Asia Pacific shares outside Japan last seen trading 1.12 per cent lower.

While Japan’s Nikkei 225 benchmark index traded 1.52 per cent lower at the time, China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s KOSPI barometers were down 0.51 per cent, 1.03 per cent and 2.48 per cent respectively.

The E-Mini S&P 500 futures were up 1.07 per cent in early Asian trade, indicating a positive start for US markets on Friday.

Overnight in the US, the S&P 500 index plunged 5.89 per cent in its steepest one-session loss since March 16, following renewed fears of a coronavirus resurgence as US states gradually reopen their economies after a nearly countrywide shutdown. Cases of the disease have jumped in several US states in recent days, raising concern among experts who say authorities have loosened restrictions put in place to contain the spread too early.

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