Domestic share markets soared more than 2 per cent on Friday, bouncing back from their longest losing streak since February. The S&P BSE Sensex index rose 803.37 points - or 2.20 per cent - to 37,356.97 at the strongest level of the day, and the broader NSE Nifty 50 benchmark climbed to as high as 11,039.50, up 233.95 points - or 2.17 per cent - from its previous close. Strong buying interest in IT stocks pushed the markets higher, however selling pressure in financial counters after the government extended the suspension of bankruptcy filings capped the upside.
The Sensex ended 786.84 points - or 2.15 per cent - higher at 37,340.44 and the Nifty settled at 11,050.25, up 244.70 points - or 2.26 per cent - from its previous close.
Bajaj Finserv, HCL Tech, Cipla, Bharti Airtel, IndusInd Bank and Larsen & Toubro, closing between 4.44 per cent and 6.60 per cent higher, led gains in the Nifty basket of 50 shares. On the other hand, UPL, Bharat Petroleum and SBI Life, ending 1.11 per cent, 0.86 per cent and 0.58 per cent lower respectively, were the only laggards in the 50-scrip benchmark index.
The suspension of bankruptcy filings, aimed at helping businesses stay afloat amid the pandemic, will stop banks from initiating insolvency proceedings against any borrower for defaults arising on or after March 25, 2020.
For the week, the Sensex shed 1,457.16 points (3.75 per cent), whereas the Nifty lost 454.70 points (3.95 per cent) - their worst week since early-May, on worries over the impact of surging cases of the coronavirus pandemic on the global economic recovery.
"In spite of the rally seen today, the markets are expected to remain volatile and directionless in the absence of solid triggers. Global cues will continue to be in focus as resurgence in virus cases around the world, leads to more restrictions and more pressure on the economic recovery," said Vinod Nair, head of research at Geojit Financial Services.
"Traders are advised to limit overnight positions and Investors are advised to only accumulate quality stocks for the time being," he added.