The Sensex benchmark fell almost 1,200 points in early trading on Friday, after U.S. markets fell almost 7 points on Thursday on fears of a second wave of contagion.
Later, however, there was a spectacular boom thanks to conquests on the European and American futures markets.
The Sensex closed with 33,781 points, an increase of 243 points or 0.72%. During the volatile session the index fluctuated around 1,508 points, with a low of 32,348 points during the day and a high of 33,856 points. Ingeniously finished with 9,673, an increase of 71 points or 0.72%. During the session a minimum of 9,544 and a maximum of 9,996 times was reached.
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At the two previous meetings, a similar index volatility was observed. According to market players, the indices are struggling to find a break-even point after a 15% increase since mid-May.
According to experts, many stocks have overheated after the sharp rise in recent weeks, but global liquidity and aggressive stimulus measures have hit the pot.
Global monetary policy remains expansionary and supports risky assets. The Fed is stepping up asset purchases and although it has ruled out the possibility of negative interest rates, real interest rates in the US are still negative. The yields on British government bonds also indicate a negative interest rate. The Bank of Japan and the European Central Bank will also continue to develop their balance sheets, said Amar Ambani, Senior President and Head of Institutional Research at YES Securities.
However, easy money trading slowed, as the Dow Jones Industrial Average fell 6.9% on Thursday, the highest level since the 16th quarter. March, against a backdrop of fear of overheating markets, coupled with fear of a second wave of contagion.
A remark from the U.S. Federal Reserve that the road to economic recovery would weigh on sentiment for a long time.
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Thursday’s decline seems insignificant, however, as U.S. futures increased 2%, indicating a strong rally on Wall Street: Weak global markets led to a weak start, but the gradual recovery of the main indices allowed the benchmark not only to offset losses, but also to close around the highest day. It all started with a statement from the U.S. Federal Reserve. However, the recovery shows that participants are still optimistic about the growth prospects, according to Ajit Mishra, Vice President (Research) of Religare Broking.
The largest positive contributions to the index were made by RIL and HDFC Bank. RIL rose by 3.3% and HDFC Bank by 1.5%.
The market as a whole continued to outperform the Nifty MidCap 100 with a profit of 1.3%. India’s volatility index, VIX, rose 4% to 30.82. Sensex recorded its first weekly loss in four weeks.
Renewal on Wall Street
Global equities opened on Wall Street one day after major indices fell more than 5%. The S&P500 won 2.6% at the start of trading, with a weekly loss.
Small business returns on equities and bonds have risen – two signs of weakening pessimism in the US economy. European markets also advanced, but Asian indices ended the session lower.moneycontrol,nifty,stock market analysis today,share market,sensex chart,nseindia,share market news,yes bank share