Sensex and Nifty bounce in hopes of stimulating global policy
NEW DELHI: equity indexes rebounded on Monday with the benchmark BSE sensex opening more than 750 points as investors placed their hopes on a coordinated response from global monetary policy to resist the damaging economic impact of the coronavirus epidemic. However, the BSE index yielded some of the profits to negotiate almost 500 points in the morning deals. The largest quoted near 11,350 levels.
The main winners of the BSE package include ICICI Bank, Reliance Industries, TCS, ONGC, NTPC and Nestle India with their stocks up to 3.45 percent.
On the NSE platform, all indexes began trading in green with Nifty Media and Metal up to 2.39 percent.
Sensex recorded its second biggest one-day drop in history on Friday, reflecting a carnage in global actions amid fears that the virus epidemic could become a greater threat to the global economy than initially anticipated.
The BSE index of 30 shares plummeted 1,448 points, or 3.64 percent, to close at 38,297.29 on Friday. During the week, sensex fell 2,873 points or 6.97 percent, and Nifty fell 879 or 7.27 percent.
According to Vinod Nair, head of research at Geojit Financial Services, the risk to the markets will increase if the infection lasts longer and continues to spread at an accelerated rate.
The numbers, regarding the spread of the disease, and to what extent it can be contained, will boost the markets next week. Government measures to boost the respective economies will also be monitored, after support from the Chinese government to boost the economy, he told the PTI news agency.
On the global front, fears of a pandemic pushed the markets to a precipice last week, eliminating more than $ 5 billion from the value of world stocks as the shares fell to their worst decline in more than a decade.
(With agency contributions)