NEW DELHI: Equity indices rebounded on Friday with the benchmark BSE sensex rising over 400 points in early trade led by gains in auto and metal stocks. The broader NSE Nifty traded above the 10,900-levels.
Top gainers in the BSE pack included TCS, Mahindra & Mahindra, IndusInd Bank, HCL Tech and Bajaj Auto with their stocks rising as much as 2.69 per cent.
On the NSE platform, sub-indices Nifty Auto and Metal surged as much as 2.1 per cent.
The 30-share BSE index had plunged 1,115 points while the Nifty crashed below the 10,850-mark on Thursday as investors dumped equities amid a sharp global selloff and concerns over economic recovery.
On the global front, Asian shares rose on Friday after robust US housing data supported a late tech-driven rally on Wall Street, with investors picking up the pieces a day after a broad regional index posted its biggest daily loss in more than three months.
US stocks ended positive in choppy trade on Thursday, led by a dogged comeback in the technology sector, having initially sold off on higher-than-expected unemployment claims.
“Sometimes the best environment for global equities is a weak economy where the government’s trying to stimulate. That’s actually a positive backdrop,” Michael Frazis, portfolio manager at Frazis Capital Partners in Sydney, told news agency Reuters.
But even after Friday’s rise, the index remains on track to post its largest weekly drop since March, pulled lower by fears that the global recovery from the novel coronavirus pandemic could be running out of steam.
Investors have also been uncertain about Washington’s ability to pass a stimulus package after Fed officials indicated they expected more fiscal support.
(With agency inputs)