Sensex, Nifty end higher as Reliance gains, bargain hunters chip in

Indian shares recovered from a sharp early drop to end higher on Friday, helped by gains in heavy-weight Reliance Industries, with investors seeking bargains as the indexes registered their first weekly loss in three.

The Nifty and Sensex fell more than 3.5 per cent each, earlier in the day on concerns over a surge in domestic coronavirus cases and a global sell-off in riskier assets.

The indexes, however, recovered with the Nifty 50 index ending up 0.72 per cent at 9,972.90 and Sensex gaining 0.72 per cent at 33,780.89.

“There is still a lot of liquidity in the markets. Also, a lot of people have missed the rally and there is fear of missing it. We will keep seeing buying on dips till the liquidity lasts,” said Samrat Dasgupta, CEO at Esquire Capital Investment Advisors.

Dasgupta, however, said the Indian market would keep seeing an overhang from rising coronavirus cases, adding that markets like the US and India have gone ahead of their fundamentals. “One has to be there in very quality, large cap stocks where the downside is limited.”

The number of coronavirus cases in India surpassed the UK, with the total number jumping to 297,535 on Friday. It is now the fourth worst affected country in the world.

Among individual stocks, Reliance Industries Ltd rose 3.3 per cent and was the top boost to the Nifty 50 index.

Mahindra and Mahindra Ltd ended up 7.14 per cent and was the top gainer in the Nifty 50 index after the company posted March-quarter results.

Meanwhile, global stocks erased some losses with Europe’s STOXX 600 Index gaining 1.45 per cent and the S&P 500 e-minis rose 1.00 per cent after the three main US stock indexes posted their worst day on Thursday since mid-March.

Indian investors are also keeping an eye out for retail inflation data for May due later in the day.