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Markets get a Reliance boost to end in green

May 08, 2020 17:35 IST

Stock markets squandered early gains but managed to end in the green on Friday, propped up by heavyweight Reliance Industries which announced another stake sale deal for its digital platform. 

IMAGE: Share-brokers monitor the stock markets from their office in Mumbai. Photograph: Niharika Kulkarni / ANI Photo.

A strengthening rupee and firm global cues also supported the domestic bourses, traders said. 

After rallying 645.13 points during the day, the 30-share BSE Sensex finally settled 199.32 points or 0.63 per cent higher at 31,642.70. 


Similarly, the broader NSE Nifty rose 52.45 points, or 0.57 per cent, to finish at 9,251.50. 

Reliance Industries was the biggest contributor to the gains on the benchmarks, jumping over 3 per cent after the company announced the sale of 2.32 per cent stake in Jio Platforms to US-based Vista Equity Partners for Rs 11,367 crore, the third such deal in a little over two weeks. 

In absolute terms, Hindustan Unilever was the top gainer in the Sensex pack, rallying 4.81 per cent, followed by Nestle India, Tech Mahindra and Sun Pharma. 

On the other hand, M&M, Axis Bank, NTPC and IndusInd Bank were among the major laggards, shedding up to 3.87 per cent. 

During the week, the Sensex plunged 2,074.92 points or 6.15 per cent, and the Nifty tanked 608.40 points or 6.17 per cent. 

"Nifty fluctuated around 150 points in another day of volatile trades, tracking uncertainty in the markets. Gains were led by Reliance, which succeeded in another round of fundraising even in this adverse scenario.  

"Global market trends were also positive following attempts to defuse tensions around the US-China trade talks. While the earnings season has been lacklustre, markets seem to be awaiting announcement of a stimulus package from the government," said Vinod Nair, head of research at Geojit Financial Services. 

BSE’s energy, FMCG, healthcare, teck and IT indices rallied up to 2.59 per cent, while power, utilities, consumer durables, auto and metals closed with losses.         

The broader BSE midcap index rose 0.04 per cent, while the smallcap gauge slipped 0.45 per cent. 

Foreign portfolio investors purchased equities worth a net Rs 19,056.49 crore in the capital market in the previous session, provisional exchange data showed. 

Global markets advanced as US and China discussed the first phase of a trade deal on Friday, while investors also welcomed moves by various countries to ease lockdown measures and resume economic activities. 

Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with substantial gains. Top stock exchanges in Europe were also trading on a positive note in their opening sessions. 

Meanwhile, international oil benchmark Brent crude futures climbed 1.73 per cent to USD 29.97 per barrel. 

On the currency front, the rupee appreciated 18 paise to provisionally settle at 75.54 against the US dollar. 

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