Amid global market weakness, indices tumble over 1%
Benchmark indices tumbled over 1% on Thursday marking their fourth consecutive session of decline. The decline came amid global market weakness weighing heavily on investor sentiment.
Indian stock markets witnessed a sharp jump on Friday after the Reserve Bank of India (RBI) announced slew of measures to support the economy during and post the coronavirus outbreak led by lockdown due to COVID-19 pandemic.
The central bank earlier in the day slashed reverse repo rate by 25 basis points (bps) to 3.75 per cent. It also announced financial refinancing of Rs 50,000 crore to NABARD, SIDBI and NHB. Out of which NABARD will get Rs 25,000 crore; SIDBI to get Rs 15,000 crore and the remaining would go to NHB.
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The stock markets reacted to the news and rallied to make some severe gains, thus leaving the benchmark S&P BSE Sensex to end at 32,588.72 up by 986 points.
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The top gainers on the BSE chart were ruled by the banks with the Axis Bank on top (up by over 13 per cent), followed by the ICICI Bank, Maruti, IndusInd Bank.
Similar trends were followed by the NSE which ended 274 points up at 9,266.75.
World markets also rallied to 11 per cent their weekly gain, the second-best performance of all time, after the US President laid out plans to gradually reopen the country’s economy.
European markets also ended in the green, leaving the investors’ sentiments positive.
Oil prices lost its early gains and plunged after Trump’s latest announcement. Brent was down by 10 cents at $72.72 a barrel.
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