Sensex rallies 568 points, Nifty reclaims 14,500-level

Breaking the two-day losing streak, the Sensex rallied by 568.38 points (1.17%) to close at 49,008.5 on Friday while the Nifty jumped 182.4 points (1.27%) to close at 14,507.3. The markets were reacting to strong global cues and remained optimistic ahead of the results season, which would kick-start in the second week of April. While the markets ended Friday’s session on a strong note, they declined for the week, with the Nifty and Sensex falling by 1.6% and 1.7%, respectively.

The markets took cues from global sentiments, which recovered after the US markets gained amid progress in vaccine distribution, boosting optimism about global growth prospects. Moreover, stronger-than-expected fourth quarter GDP data in the US also boosted the sentiment.

Asian markets in South Korea, China, and Hong Kong rallied by 1.09% to 1.57%. Similarly, European markets also reacted to the risk-on sentiment with bourses in France, the UK and Germany rising by 0.36% to 0.72%.

Siddhartha Khemka, head — retail research, Motilal Oswal Financial Services, said: “Global cues were positive as the US markets gained amid progress in vaccines distribution. Further, positive US jobs data and stronger-than-expected Q4 GDP data boosted market sentiments.”

On the domestic front, the markets were pulled up by metals and banking stocks. The buying in metal stocks was triggered by rising prices. The biggest gainers in Nifty were Tata Steel, Bajaj Finserv, Asian Paints, Hindalco and Tata Motors, up by 5.82%, 4.4%, 3.99%, 3.96%, and 3.92%. On the other hand, the biggest losers were UPL, Powergrid Corporation, Eicher Motors, ITC, and IndusInd Bank, down by 1.39%, 1.25%, 0.72%, 0.33%, and 0.23%.

The markets, however, ended the week declining by 1.7% due to the risk-off sentiment globally amid rising Covid-19 cases, with Europe witnessing its third wave. India, too, is witnessing a rise in Covid-19 cases which dampened the investor sentiment with some states going into partial lockdowns. This, according to experts, could impact the estimates they had for the economic recovery.

Rusmik Oza, head – fundamental research, Kotak Securities, said: “The Nifty-50 Index lost 1.6% this week due to turmoil in global equity markets and the sharp rise in Covid-19 cases in India. This week’s monthly expiry was weak and the fiscal-end phenomenon could also be at play. With fresh restrictions and faster vaccination, we can expect the sentiment to remain positive at the start of the new fiscal. The earnings season will also kick in from the second week of April which could turn out to be the driver for stocks.”

Foreign portfolio investors have sold stocks worth $623 million in total this week. On Friday too, they offloaded shares worth $6.6 million, provisional data showed. Domestic institutional investors, on the other hand, bought stocks worth $222.7 million.