Market rebounds amid weak global cues; Sensex up 642 pts

Mumbai: Equity benchmarks Sensex and Nifty regained footing on Friday after five days of losses as investors snapped up RIL, FMCG and IT stocks even as global markets tumbled amid concerns over rising US Treasury yields.

Participants shrugged off a spurt in Covid-19 cases in multiple states, though reimposition of localised lockdowns can pose a threat to economic recovery, traders said. After opening with significant losses, the 30-share BSE Sensex made a U-turn to end 641.72 points or 1.30 per cent higher at 49,858.24.

On similar lines, the broader NSE Nifty surged 186.15 points or 1.28 per cent to finish at 14,744. NTPC was the top gainer in the Sensex pack, rallying 4.58 per cent, followed by HUL, PowerGrid, Reliance Industries, ITC, UltraTech Cement and HCL Tech. Index heavyweight Reliance Industries accounted for the lion's share of the gains.

On the other hand, L&T, Tech Mahindra, Bajaj Auto and Titan were among the laggards, slipping up to 1.20 per cent. During the week, the Sensex sank 933.84 points or 1.83 per cent, while the Nifty declined 286.95 points or 1.90 per cent.

"The highly volatile domestic markets witnessed a smart recovery from its morning weakness and was swinging between gains and losses during the day owing to strong buying seen in FMCG, Pharma and Energy stocks.

However, auto stocks were under pressure after the announcement of the government's new scrapping policy. "The unsettling pace of US bond yields and a surge in Covid cases worldwide resulted in the global markets trading deep in red," said Vinod Nair, Head of Research at Geojit Financial Services.