Sensex Soars Over 2,100 Points, Nifty Tops 8,800 Amid Broad-Based Buying

Sensex Soars Over 2,100 Points, Nifty Tops 8,800 Amid Broad-Based Buying

Gains in IT, energy and consumer goods stocks supported the markets

Domestic stock markets surged on Friday following four sessions of bruising losses, amid hopes of a stimulus package as Prime Minister Narendra Modi announced a financial task force to combat the Covid-19 pandemic's economic fallout. The S&P BSE Sensex index touched 30,418.20 in early afternoon deals, and the broader NSE Nifty 50 benchmark - which started the day at 8,284.45 - climbed to as high as 8,883. The bounce-back in the markets came a day after the government announced the establishment of a special task-force to protect the economy from the fast-spreading coronavirus outbreak.

Here are 10 things to know about the rebound in markets today:

  1. At 1:48 pm, the Sensex traded 1,963 points - or 7.00 per cent - higher at 30,233, while the Nifty was up 543 points - or 7.11 per cent - at 8,812.

  2. Forty eight in the Nifty basket of 50 shares moved to the positive territory. Top percentage gainers were ONGC, GAIL, Wipro, TCS and Dr Reddy's - all enjoying double-digit percentage gains of between 10.41 per cent and 15.32 per cent.

  3. The Nifty IT index - comprising stocks of 10 technology majors including TCS, Infosys, Wipro and HCL Tech - was up 10.75 per cent, having risen as much as 11.23 earlier. Shares in Infosys were up 9.79 per cent at the time.

  4. All sectors traded well in the green at the time as buying emerged in financial stocks, which remained under selling pressure for the entire first half of the session.

  5. Heavyweights Reliance Industries, TCS and Infosys alone accounted for a gain of more than 600 points in the Sensex.

  6. Analysts say investors the world over are weighing the fast-spreading coronavirus pandemic against the policy measures being announced to fight its impact on business.

  7. "We've already seen a sharp fall, and this is an intermittent bounce back due to value-buying and some short-covering," said Siddhartha Khemka, head of retail research at Motilal Oswal Securities. "It is difficult to say if markets will sustain this momentum."

  8. Addressing the nation on Thursday on the fast-spreading coronavirus, Prime Minister Narendra Modi said that a COVID-19 Economic Response Task Force will be set up under the leadership of Finance Minister Nirmala Sitharaman to deal with the economic fallout of the coronavirus pandemic. Earlier, market regulator Sebi announced a one-month extension to companies for filing their earnings for financial year 2019-20.

  9. "The announcements by global central banks and stimulus measures are helping. Some short-covering is also happening," said Mayuresh Joshi, head of equity research at William O'Neil & Co in India. "But overall, how the pandemic will be contained still remains a cause of concern," he added.

  10. Equities in other Asian markets traded higher, with MSCI's broadest index of Asia-Pacific shares outside Japan last seen trading 0.6 per cent higher. Overnight in the US, the Dow Jones Industrial Average ended 0.95 per cent higher, while the S&P 500 and the Nasdaq Composite indices rose 0.47 per cent and 2.3 per cent respectively, after steep losses recently.