Markets snap five-session losing streak

Indian equity markets on Friday snapped a five-session losing streak, gaining 1.3% from the previous close following select buying in HUL, Reliance, ITC and PSU stocks even as concerns remained over high bond yields.

The S&P BSE Sensex gained 642 points to 49,858, or up 1.3%, though the index.

The NSE Nifty 50 index gained 186 points to 14,744, or 1.28% higher

Dr. Joseph Thomas, head of research, Emkay Wealth Management, said all major indices, including banking, IT, pharma and healthcare and technology provided the necessary push to for the indices to surge.

“This is in contrast to the fall seen in the Eastern markets and early [trade in ] Europe. There could be some amount of short covering given the selling seen earlier this week, and also a marked relief with some improvements due to a fall in the oil prices,” he said.

“But the issues surrounding higher U.S. yields will continue to be material to the markets in the coming weeks. The Fed sees growth and the Fed sees inflation, and so, the yields will go higher,” he added.

This may have consequences for equities, though in a limited way, in the coming days, Dr Thomas said.