Markets rebound after heavy fall in previous trade; Sensex rallies over 635 points

The Sensex rebounded in early trade on Friday after falling sharply the previous day and jumped over 635 points, in tandem with rally in Asian markets and buying in index major Reliance Industries.

The 30-share BSE Sensex was trading 635.43 points higher at 53,565.74. The broader NSE Nifty jumped 186.4 points to 15,994.40.

Among the Sensex firms, Sun Pharma, Bajaj Finserv, Titan, Bajaj Finance, IndusInd Bank, Reliance Industries, Dr Reddy’s and Tata Steel were the major gainers in early trade. In contrast, NTPC and TCS were the laggards.

Markets in Asia were trading in the green, with Tokyo, Hong Kong, Seoul and Shanghai quoting significantly higher.

“Asian stocks rose on Friday in a roller coaster ride amid a bout of calm in global markets,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

Stock exchanges in the U.S. had ended on a mixed note on Thursday.

Meanwhile, international oil benchmark Brent crude jumped 1.57% to $109.14 per barrel.

The Sensex tumbled 1,158.08 points or 2.14% to end at 52,930.31 on Thursday. The NSE Nifty plunged 359.10 points or 2.22% to settle at 15,808.

Continuing their selling spree, foreign institutional investors offloaded shares worth Rs 5,255.75 crore on Thursday, according to stock exchange data.

Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, caution will still prevail amongst the investors after the CPI inflation galloped to 8-year high of 7.79%.

India’s headline inflation galloped for a seventh straight month to touch an 8-year high of 7.79% in April on rising food and fuel prices, raising the odds of an interest rate hike by the RBI early next month to tame prices.