The equity markets stabilized after a turbulent start as early hours of trade began on Friday as BSE Sensex gained 136 points.
The markets started volatile as the early hours of trading began on Friday, but soon saw an increase in 136 points to settle for green. The 30-share BSE Sensex opened with a jump of 114.48 points at 33, 465.05 but soon plunged to red. However, the index increased to 136 points at 12.34 PM.
On Thursday, the Sensex managed its highest single-day gain of 318 points since Feb 23 to end its six days losing streak. The Dalal street has been under pressure due to weak global cues in the wake of trade war fears and the murky state of affairs in the banking sector closer home.
The PSU bank sub-index was once again a percent down, but all other sectoral sub-indices were trading in green in the early trading hours today. Nifty Pharma led the rally.
Nifty continued to grow
The broader 50-share NSE Nifty also followed a similar pattern and was up by almost half of a percent. Yesterday the benchmark reclaimed 10200-mark to settle at 10,242.65 by claiming an increase of 88.45 percent.
On Thursday, Vinod Nair, Head of Research, Geojit Financial Services, said,” Market reversed from the last six days losing streak as ease in trade war concerns and short covering in PSU banks supported the rally. Mid & Small-cap continued to underperform, as investors are still waiting for further ease in violation.”
A dealer spoke,” Bargain buying in the PSU banks aided markets’ recovery, through midcaps and small caps continued to underperform the benchmark indices. Central bank meetings should call for cautiousness, and markets will closely follow developments along US import tariffs.”