Mumbai: The equity markets snapped their six-session losing streak amidst gains in overseas equities as concern regarding a global trade war eased after a senior US official said that the final tariff plan would exempt its partner countries.
The Nifty soared 88.45 points or 0.87 per cent to end the day at 10,242.65 while the Sensex closed the session at 33,351.57, up 318.48 points or 0.96 per cent. The rally was primarily driven by bank stocks that were hammered badly over the past few weeks after PNB reported a massive fraud at one of its branches in Mumbai.
“At the moment there is nothing wrong with Indian markets fundamentals and I believe that we should possibly recover from here. What is happening at the moment is that the market is swinging on either side on low volumes due to lack of participation from both retail as well as institutional investors,” said Deven Choksey, MD, K.R.Choksey Securities.
On concerns regarding the possibility of global trade wars impacting India, Mr Choksey noted that India imports more than what it exports and we have fair trade equation with both US and the European Union. “So, I don’t think it is going to have a major impact on India,” he added.
On Thursday, bank stocks soared with SBI and ICICI Bank clocking gains of 4.09 per cent and 3.58 per cent respectively while HDFC and Axis Bank gained 2.02 per cent and 1.43 per cent.
According to the provisional data released by the stock exchanges foreign portfolio investors (FPI) sold shares worth Rs 365 crore. However, the broader market remained with 1,530 stocks declining as against 1,197 stocks that advanced suggesting that the underlying sentiments still is cautious. India’s volatility index dropped 7.10 per cent on the NSE.
