Indian Stocks Strike Happy Note

Sensex Rallies with Global Market

India News

Indian Stocks Strike Happy Note
While cricket matches were being won, stocks rose over 1.5 per cent on Friday 29th January 2016, posting their first weekly gain in four, as a rebound in commodity prices and Bank of Japan’s bold move to adopt negative interest rates ended a tough month for markets with a flourish.

Asian markets gained between 1 per cent and 3 per cent as BoJ’s move surprised investors, most of whom had believed Japanese policymakers were too cautious to ever adopt such a radical measure.

The rally also got legs from global oil prices that were trading above $34 a barrel and heading towards their second weekly gain.

“Oil prices have recovered 20 per cent from their lows and metal prices have firmed up supporting the market,” said G Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.

The Sensex gained 401.12 points or 1.64 per cent to 24,870.69. The 30-share Sensex had lost 22.82 points in the previous choppy session. For the week, it rose 1.78 percent but fell 4.77 per cent in January.

Similarly, the NSE NIfty rose 138.90 points or 1.8 per cent at 7,563.55. Volatility was down 3.6 per cent with the India Vix quoting at 17.24.

For the week, the index gained 1.9 per cent, its first weekly gain in four. It shed 4.8 per cent in January in its worst monthly performance since August 2015.

Top 5 Sensex gainers: Hero MotoCorp (+4.9%), Sun Pharma (+4.9%), Coal India (+4.7%), Bajaj Auto (+3.5%) and Dr Reddy’s (+3.4%).

Losers included SBI (-3.1%), Tata Steel (-2.6%), ICICI Bank (-1.7%), NTPC (-1.4%) and ITC (-0.19%).