As world stock markets saw a modest rebound after China removed trading curbs, the domestic equities broke a four-session losing
streak, but failed to stop the BSE benchmark Sensex from logging its worst weekly performance since November 2011.
The Sensex rose by 82.50 points to recover from 19-month lows on Friday but on a weekly basis tumbled by 1,226.57 points or 4.68 per cent on concerns over the health of Chinese economy and geopolitical tensions between Saudi Arabia and Iran. Besides, NSE Nifty tanked by 361.85 points or 4.54 per cent during the week.
Also, major Chinese stocks on Friday bottomed out after the securities regulator decided to terminate the controversial “circuit-breaker” mechanism that has halted trading twice this week, including after an abrupt sell-off on Thursday that led to heavy losses and spooked global markets. Meanwhile, European shares also staged a modest comeback after the China’s move.
Experts, however, feel that global recovery help recover the domestic stocks following stable rupee and low buying.
“Recovery in global equities, especially Chinese markets, stable rupee and lower level buying helped the indices recoup losses,” said Gaurav Jain Director Hem Securities.
With such sign of global recovery, the sentiment helped the rupee recover from a three-week low by rising more than 30 paise against the dollar.
The 30-share Sensex opened on a firm note at 24,969.02 and advanced to regain the 25,000-mark to hit a high of 25,083.55 largely supported by rebound in blue-chips. As profit-booking took hold it gave up part of the early gains and touched a low of 24,887.22 before finally closing the session 82.50 points or 0.33 per cent higher at 24,934.33.
However, sentiment remained cautious ahead of quarterly earnings season, which will start with Infosys posting results on Tuesday. Shares of real estate companies such as HDIl, DlF, Oberoi Realty, Unitech, Phoenix, Indiabulls Real Estate, Godrej Properties and NBCC were in better shape and settled up to 5.76 per cent higher, lifting the sectoral index the most.