Mumbai– A relief rally, backed up by bargain hunting and positive global cues, lifted the Indian stock market on Friday.
The upmove lifted S&P BSE Sensex by over 800 points, ending the six-day losing streak.
Similarly, the Nifty50 of the National Stock Exchange rose to close near the psychological 11,000 mark.
Investors took to bargain buying after the indices plunged around 3 per cent on Thursday, analysts said.
Healthy buying was witnessed across sectors led by IT, auto, banking and metal stocks.
The Sensex closed at 37,388.66, higher by 835.06 points, or 2.28 per cent, from its previous close of 36,553.60.
It had opened at 36,991.89 and touched an intra-day high of 37,471.17 and a low of 36,730.52 points.
The Nifty50 closed the day’s trade at 10,998.60, higher by 193.05 points, or 1.79 per cent, from its previous close.
Manish Hathiramani, technical analyst with Deen Dayal Investments, said: “While the markets spent some time above the psychological level of 11,000, the weakness in the index continues. The resistance on the upside is at 11,300. Until that is not crossed, we cannot surmise that the short term bear trend has been completed and an upside rally will ensue. On the downside, the Nifty can fall to achieve the 10,750 level.”
Analysts, however, expect the volatility in the market to continue in days ahead.
Vinod Nair, Head of Research at Geojit Financial Services, opined that the relief rally seemed to be based on the hope of more stimulus measures by the government.
Deepak Jasani, Head of Retail Research at HDFC Securities, said: “Indian equity benchmark indices recovered most of Thursday’s losses on Friday and cut the losses for the week sharply.”
“Globally, investors seemed relieved from the news that Democrats in the US House of Representatives are working on a $2.2 trillion coronavirus package that could be voted on next week. In Europe, the region’s soaring pandemic cases weighed on sentiments.” (IANS)
