Sensex snaps 5-session selloff, climbs 642 points; NTPC gains over 4%

Equity benchmarks Sensex and Nifty regained footing on Friday after five days of losses as investors snapped up Reliance, FMCG and IT stocks even as global markets tumbled amid concerns over rising US Treasury yields.

Participants shrugged off a spurt in Covid-19 cases in multiple states, though reimposition of localised lockdowns can pose a threat to economic recovery, traders said.

After opening with significant losses, Sensex took a U-turn to end 641.72 points or 1.30 per cent higher at 49,858.24.

On similar lines, the NSE Nifty surged 186.15 points or 1.28 per cent to finish at 14,744.

NTPC was the top gainer in the Sensex pack, rallying 4.58 per cent, followed by HUL, PowerGrid, Reliance Industries, ITC, UltraTech Cement and HCL Tech.

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Reliance Industries accounted for the lion’s share of the gains. On the other hand, L&T, Tech Mahindra, Bajaj Auto and Titan were among the laggards, slipping up to 1.20 per cent.

During the week, the Sensex sank 933.84 points or 1.83 per cent, while the Nifty declined 286.95 points or 1.90 per cent.

“The highly volatile domestic markets witnessed a smart recovery from its morning weakness and was swinging between gains and losses during the day owing to strong buying seen in FMCG, Pharma and Energy stocks. However, auto stocks were under pressure after the announcement of the government’s new scrapping policy.

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“The unsettling pace of US bond yields and a surge in Covid cases worldwide resulted in the global markets trading deep in red,” said Vinod Nair, Head of Research at Geojit Financial Services.

Sector-wise, BSE power, utilities, energy, FMCG, basic materials and metals indices rose up to 3.25 per cent, while BSE realty and capital goods closed with losses.

Broader BSE midcap and smallcap indices rallied up to 1.35 per cent.

World equities stayed on the back foot as investors fretted over elevated US bond yields and the slow pace of Covid-19 vaccine roll-outs in many countries.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a negative note.

Stock exchanges in Europe were also trading with losses in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 1.36 per cent higher at USD 64.14 per barrel.

The rupee ended just 1 paisa higher against the US dollar at 72.52.

Foreign institutional investors remained net buyers in the capital market as they bought shares worth Rs 1,258.47 crore on Thursday, according to exchange data.

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First Published: Sat, March 20 2021. 00:34 IST

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