Sensex, Nifty rebound on global policy stimulus hopes

NEW DELHI: Equity indices rebounded on Monday with the benchmark BSE sensex opening over 750 points higher as investors placed their hopes on a coordinated global monetary policy response to weather the damaging economic impact of the coronavirus epidemic. However, the BSE index shed some of its gains to trade nearly 600 points up in late morning deals. The broader NSE Nifty traded above the 11,350-levels.
Major gainers on the BSE pack include ICICI Bank, Reliance Industries, TCS, ONGC, NTPC and Nestle India with their stocks up as much as 3.45 per cent.
On the NSE platform, all the indices started trading in green with Nifty Media and Metal up as much as 2.39 per cent.
Sensex logged its second-biggest one-day fall in history on Friday, mirroring a carnage in world equities amid fears that the virus epidemic may turn out to be a bigger threat to the global economy than initially anticipated.
The 30-share BSE index crashed 1,448 points, or 3.64 per cent, to close at 38,297.29 on Friday. During the week, sensex plunged 2,873 points or 6.97 per cent, and Nifty tumbled 879 or 7.27 per cent.
According to Vinod Nair, head of research at Geojit Financial Services, the risk to markets will increase if the infection lasts longer and continues to spread at a fast pace.
"The numbers, regarding the spread of the disease, and how far it can be contained, will drive the markets next week. Measures by governments to boost respective economies will also be watched out for, post the Chinese government's support to bolster the economy," he told news agency PTI.
On the global front, pandemic fears pushed markets off a precipice last week, wiping more than $5 trillion from global share value as stocks cratered to their steepest slump in more than a decade.
(With agency inputs)