‘Relief rally’ lifts Sensex
Stocks got a breather on Friday as the rupee staged a smart recovery of over 0.5 paise against the US dollar and global shares, too, witnessed a relief rally. The Sensex gained 732 points, or 2.15 per cent, to close at 34,733. The broader index Nifty rose 237 points. or 2.32 per cent. at 10,472.
Markets around the globe picked up their cues from the US, where the benchmark indices, Dow Jones and Nasdaq looked oversold on Thursday after falling over 5 per cent in just three trading sessions. In early trades on Friday, the US indices were up by about 1 per cent.
Rally could continue
“The Nifty rally could continue for another 300 to 400 points as the fall in recent weeks was brutal, and nobody is likely to go short at these levels,” a research analyst told BusinessLine.
The rupee closed at 73.57, against the previous close of 74.13. The currency has declined by 13 per cent in 2018, which has led to foreign portfolio investors (FPIs) selling more than $10 billion worth of both debt and equity. Bond markets globally have witnessed an unprecedented rally putting pressure on equities, analysts say.
YES Bank shares rose 3 per cent on news that it had appointed global headhunter Korn Ferry to assist the company’s committee in evaluating candidates to find a successor to the outgoing MD and CEO. Hindustan Unilever rose 3 per cent ahead of secondquarter results. GM Breweries rose 5 per cent after it reported robust numbers in the quarter ended September 2018.