Sensex above 16,000 as markets recover
Google and Facebook have the same number of users. However, Google's net profit and revenue is 10 times that Facebook. Yet, at over $ 100bn, the stock market is giving a market value to Facebook that is only half of Google.
The BSE Sensex made a dramatic recovery Friday, recovering nearly 300 points from the day's low. It traded nearly 40 points or 0.24% higher at 16,109 at 1.55 pm. The broader Nifty index gained 12 points to 4,882.
Earlier, the benchmark indices had witnessed deep cuts, with the Sensex falling below the 16,000 mark for the second time this week and the Nifty breaching the 4,800 levels.
Banking stocks led the turnaround, with the BSE Bankex rising 1.3%, the most among all other groups of stocks. A solid performance by State Bank of India (3.6%), India's biggest lender, lifted sentiments.
SBI's net profit rose to Rs 4,050 crore in the March quarter. The asset quality was a positive surprise and came as a major relief to investors. The stock was the biggest gainer on the Nifty index.
SBI's outperformance drove other banking stocks - Kotak Mahindra (1.68), PNB (1.67%) and ICICI Bank (1.34%) - higher in trade today.
24 of the 50 Nifty stocks bounced back into the green. Energy stocks (1%) also saw buying interest. Market bellwether Reliance Industries (1.5%) saw strong gains.
Auto stocks (-1.33%) continued to face selling pressure, though they traded off the day's low. Tata Motors (-2.75%) and Maruti Suzuki (-2.56%) continued to be laggards on the Nifty.
Tata Steel (-2.5%) traded lower ahead of reporting March quarter numbers. Two-wheeler major Bajaj Auto (-2.24%) fell after posting numbers yesterday.
The market breadth had improved with 34% stocks rising on the broader BSE 500 index.