Indian stock markets recovered in noon trade, with Sensex and Nifty rebounding off day’s lows. The Sensex was down 66 points at 33,618, off its day’s low of 33,332. The Nifty was down 20 points at 10,105 after hitting 10,004 at day’s low. The broader markets pulled into the positive territory with BSE midcap and smallcap indices trading in the green. Indian stock markets had opened on a weak note, tracking weak Asian markets. The broader NSE Nifty came close to test the key psychological level of 10,000 points.
Sensex recovers 300 points from day’s low, RIL rises 2%
Asian shares fell to a 20-month low despite a bounce on Wall Street overnight, highlighting fragile investor confidence. A host of factors including a depreciating rupee, a tick-up in oil prices overnight, and weak cues from global markets are weighing on the market, said Siddhartha Khemka, head of retail research at Motilal Oswal Securities.
Among the Sensex stocks, Tata Motors, RIL, and Tata Steel were up between 2% and 4%. Hero MotoCorp, Bajaj Auto, Tata Steel, Bharti Airtel, M&M, Maruti Suzuki were among other top gainers.
Private-sector lender Yes Bank Ltd was the top percentage loser, plunging 6% after its quarterly profit missed estimates. IT giants Infosys Ltd and Tata Consultancy Services Ltd (TCS) were the top drags on Friday. Infosys dropped 2.1% to its lowest since July 6, while TCS slipped 2.5% to a four-month low. Among other top losers, Axis Bank dropped 3%.
Global markets have been whipsawed in recent sessions on concerns over global growth as investors fretted over US-China trade frictions, a mixed bag of US corporate earnings, Federal Reserve rate hikes and Italian budget woes. A slowdown in China has been particularly worrying for policy makers and investors, hitting asset markets from stocks to currencies and commodities.
Investors will get a chance to check the US economic pulse later Friday when the government releases third-quarter GDP data.
Oil prices gave up some ground after earlier rising on signals from Saudi Arabia’s energy minister that there could be a need for intervention to reduce oil stockpiles. US crude dipped 0.74% at $66.83 a barrel. Brent crude fell 0.49% to $76.51 per barrel.