Red rain in markets!
Indian markets witnessed a record intraday recovery on Friday, as the market participants indulged in bargain hunting after a severe crash. This sharp recovery helped to restore some faith and confidence of the markets participants. After this mammoth jump by the bulls, the bull camp would have been visualising the start of bright and prosperous days on D-Street but SGX Nifty is trading deep in red with cuts of almost four per cent at 9,584 levels. So, the markets participants are in for a wild ride on Monday. As long as things are uncertain on Coronavirus, the world will continue to struggle and until we get a permanent solution to this virus, volatility cannot be escaped. The number of Coronavirus cases is on the rise in India; with Maharashtra reporting 12 fresh cases on Sunday. In this high volatile day, the market participants would look for some rosy news and the listing of SBI Cards & Payment Services is kind of event which could lift sentiments as it would be interesting to see whether it will make a blockbuster debut or a tepid one, we will come to know for sure today. Further, on macroeconomic front, the traders will track WPI inflation data, which is slated to be announced later in the day.
Majority of Asian stock market is tumbling on Monday despite the Federal Reserve’s emergency rate cut, which is all the way down to zero per cent. US President Donald Trump cheered this move but bulls appear skeptical. Hong Kong Hang Seng has plummeted 2.32 per cent and China’s Shanghai Composite has shed 0.55 per cent while, Japan’s Nikkei has gained 0.20 per cent.
Back home, Friday the 13th turned out to be a historic day, which the markets participants will remember for the years to come. Markets opened with a huge gap down and within few minutes of the trade, it hit lower circuit. Trading was at a halt for 45 min minutes and after the trading resumed, the markets recorded biggest intraday recovery as it not only managed to recoup entire losses but also managed to end the day with nearly a whopping four per cent gain. Nifty settled at 9,955-mark and BSE Sensex closed at 34,103 levels. The broader markets Nifty Mid-cap and Small-cap ended higher by 2.68 and 1.39 per cent, respectively. On the sector front, barring Nifty Media, all other indices ended in green with Nifty PSU Bank, Nifty Metal Nifty Financial Services and Nifty Bank being the top gainers. India VIX surged 24 per cent to settle at 51.47 levels.
In the western markets, US stocks enjoyed a phenomenal rally on Friday after US President Donald Trump declared a national emergency in US to address Coronavirus pandemic. President also announced that government is partnering with private companies to set up drive through Coronavirus testing facilities across the country. Dow skyrocketed nearly 2,000 points, Nasdaq jumped 573 points and S&P 500 soared 230 points. European markets too ended in green.