·
The Sensex settled today
5.75% or 1627 points higher at 29,915
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The gains were led by IT
stocks
Indian stock markets rebounded strongly today to finish
6% higher, driven by gains in IT stocks. Global markets today made a partial
comeback from a rout as policymakers across the world launched fresh efforts to
stem the economic fallout of the coronavirus pandemic. The Sensex settled 5.75%
or 1,627 points higher at 29,915, the most in a single session since May 2009.
But on a weekly basis, the Sensex slumped 12%, its worst week in over 10 years.
The broader Nifty closed up
5.83% at 8,745. Both Nifty and Sensex logged their worst week since 2008.
Analysts remain cautious despite today's rebound.
"Tracking positive
sentiments in the global markets, Indian indices closed up by around 6%. It was
in sync with Asian and European markets and was more of a relief rally driven
by technicals rather than any fundamental change in outlook. Hopes of further
stimulus from central banks across the world to contain the economic damage
boosted global markets. The broader market indices were also up by around
4%," said Vinod Nair, head of research at Geojit Financial Services.
Central banks in Europe, Japan, Australia and the US have announced new
stimulus to help businesses battered by a near halt in economic activity due to
the virus outbreak.
"It was the fourth
consecutive week of big pain for the stock market investors but there was a
minor relief on the last day. Coronavirus has become a black swan event which
is resulting in both life and financial crisis and this is the main reason for
the steepest fall in the market. If the situation improves from here then we
can expect a bargain buying in the market which may lead a smart rally in the
coming days but if the situation worsens from here then the pain will continue
for the market players," said Santosh Meena, senior analyst at
TradingBells.
"Technically, Nifty has an important support area of 8400-7900 because
8433 is 100-Months simple moving average and in 2008 market made a bottom at
100-months average whereas 7900 is low at the time of demonetization. On the
daily chart, Nifty has formed a kind of morning star candlestick pattern which
is a ray of hope that the market has made bottom but it is very difficult to
say about the bottom with confidence because levels have become meaningless in
current uncertainty. In the upside 9000 will act as an immediate
resistance," he added.
Shares of ONGC were among
the top gainers on the Nifty 50, closing 18.5% higher as oil prices bounced
back. The Nifty IT index today settled up 9.0%, with shares of Infosys ending
the day more than 7% higher.
Shares in India's largest private-sector lender HDFC Bank slid as much as 7.9%
and closed down 1.4% after Bernstein downgraded the stock. (With Agency Inputs)
