Tag: sensex

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.

Indian equity benchmarks dropped by more than 1% for the second straight session on Thursday on concern that rising U.S. bond yields in the wake of the Federal Reserve’s dovish policy stance could herald foreign fund outflows.

Amid widespread selling pressure, the S&P BSE Sensex slumped 585 points, or 1.17%, to close at 49,217. The NSE Nifty 50 index slid 163 points, or 1.11%, to 14,558. Both the indices fell for the fifth consecutive session.

Analysts said the rising U.S. bond yields could spur an outflow of funds.

“Equities fell into sharp correction after early optimism as U.S. bond yields rose to their highest level since January,” said Vinod Nair, head of research, Geojit Financial Services.

Mr. Nair said Indian markets saw more volatility than its global peers as domestic investors turned extra cautious on the increasing number of COVID-19 cases.

“The mounting concerns of possible fresh economic restrictions made enthusiasm of dovish commentary from the Federal Reserve short-lived for domestic markets,” Press Trust of India quoted Binod Modi, head strategy at Reliance Securities, as saying.