Domestic stock markets jumped nearly 2 per cent on Friday, bouncing back from their longest losing streak since February amid strong buying interest in IT stocks. The S&P BSE Sensex index rose 706.78 points – or 1.93 per cent – to touch 37,260.38 at the strongest level of the day, and the broader NSE Nifty 50 benchmark climbed to as high as 11,011.75, up 206.2 points – or 1.91 per cent – from its previous close. However, selling pressure in banking and financial services shares after the government extended the suspension of bankruptcy filings limited the upside.
At 1:18 pm, the Sensex traded 564.03 points – or 1.54 per cent – higher at 37,117.63 while the Nifty was up 164.20 points – or 1.52 per cent – at 10,969.75.
Both indices were still on course to register their worst week since early-May, on worries over the impact of rising COVID-19 cases on the global economic recovery.
Bharti Airtel, HCL Tech, Cipla, IndusInd Bank and Bajaj Finserv, trading between 4.06 per cent and 5.25 per cent higher, were the top gainers in the 50-scrip benchmark index.
SBI Life and Bharat Petroleum, down 1.58 per cent and 1.50 per cent, were the worst hit among five laggards in the Nifty basket of shares.
Infosys, Tata Consultancy Services and ICICI Bank were the biggest contributors (more than 200 points) to the gain in Sensex.
The suspension of bankruptcy filings, aimed at helping businesses stay afloat amid the pandemic, will stop banks from initiating insolvency proceedings against any borrower for defaults arising on or after March 25, 2020.
Broader Asian peers rose on Friday after an overnight tech-led rally in US stocks, on hopes of economic stimulus for the revival of the world’s largest economy. MSCI’s broadest index of Asia Pacific shares outside Japan was last seen trading 0.19 per cent higher, while Japan’s Nikkei 225 benchmark was up 0.51 per cent.
The E-Mini S&P 500 futures moved 0.21 per cent higher, indicating a positive start for US markets later in the day.
European shares started Friday’s session on a mixed note, with the United Kingdom’s FTSE 100 benchmark up 0.25 per cent in early trade. France’s CAC 40 index and Germany’s DAX 30 barometer were down 0.38 per cent and 0.19 per cent respectively.