Sensex Stages Stunning Comeback, Jumps 1,534 Points, Nifty Tops 16,250; Metal, Pharma Stocks Surge
Indian equity benchmarks on Friday made a strong comeback after falling sharply in the previous session, led by gains in metal and pharma stocks. The relief rally came as Asian stocks jumped after China cut a key lending benchmark to support a slowing economy.
The 30-share BSE Sensex climbed 1,534 points or 2.91 per cent to close at 54,326, while the broader NSE Nifty moved 457 points or 2.89 per cent up to settle at 16,266.
The market capitalisation of BSE-listed firms surged by Rs 5,05,143.44 crore to stand at Rs 2,54,11,537.52 crore.
Mid- and small-cap shares finished on a strong note as Nifty Midcap 100 rose 2.20 per cent and small-cap gained 2.51 per cent.
All of the 15 sector gauges -- compiled by the National Stock Exchange -- settled in the green. Sub-indexes Nifty Metal and Nifty Pharma outperformed the index by rising as much as 4.20 per cent and 3.69 per cent, respectively.
On the stock-specific front, Dr Reddy's was the top Nifty gainer as the stock soared 7.60 per cent to Rs 4,228. Reliance Industries, Adani Ports, JSW Steel and Tata Motors were also among the gainers.
The overall market breadth stood positive as 2,497 shares advanced while 777 declined on BSE.
All the Sensex constituents finished with gains. On the 30-share BSE index, Dr Reddy's, RIL, Nestle India, Tata Steel, L&T, Axis Bank, IndusInd Bank, Sun Pharma, SBI, HDFC, ICICI Bank and Hindustan Unilever were among the top gainers.
Meanwhile, shares of Life Insurance Corporation of India (LIC) plunged 1.72 per cent to close at Rs 826.25 today. LIC made a tepid debut at the exchanges on Tuesday, listing at a discount of 8.62 per cent over its issue price of Rs 949.
"Market took a complete U-turn from Thursday's slump as bargain hunting following the recent crash and recovery in other Asian indices bolstered the sentiment back home," said Amol Athawale, Deputy Vice-President - Technical Research, Kotak Securities.
Investors expect markets to remain volatile due to global factors. Global equities have been under pressure from the Russia-Ukraine war and aggressive interest rate hikes in the future to contain surging inflation.
