Sensex Rises Over 250 Points, Nifty Touches 12,850 Amid Broad-Based Gains

Domestic stock markets started Friday's session on a positive note, a day after benchmark indices halted a winning streak that lasted four days in a row. The S&P BSE Sensex index jumped 289.44 points - or 0.66 per cent - to touch 43,889.40 at the strongest level recorded in early deals, having begun the day up 132.18 points (0.30 per cent) at 43,732.14.. The broader NSE Nifty 50 benchmark climbed to as high as 12,855.20, up 83.5 points - or 0.65 per cent - from its previous close.

At 9:19 am, the Sensex traded 231.99 points - or 0.53 per cent - higher at 43,831.95 while the Nifty was up 38.50 points - or 0.30 per cent - at 12,810.20. (Track Sensex, Nifty Here)

Tata Steel, Bajaj Finserv, Hindalco, Bajaj Finance and NTPC, trading between 2.17 per cent and 2.82 per cent higher, were the top percentage gainers in the Nifty basket of 50 shares. 

On the other hand, UPL, Adani Ports, SBI Life and HUL - down 0.36-0.91 per cent each - were the worst hit among eight laggards in the index. 

HDFC, HDFC Bank and Bajaj Finance were the biggest contributors to the gain in Sensex.

Globally, equity markets were struck by a wave of uncertainty on Friday after US Treasury Secretary Steven Mnuchin called for an end to coronavirus pandemic relief for struggling businesses, sparking a rare clash between the central bank and Treasury.

In Asia, MSCI's broadest index of Asia-Pacific shares excluding Japan eked out a 0.20 per cent gain. Japan's Nikkei 225 benchmark dropped 0.50 per cent. South Korea's KOSPI index was flat, Australian shares were mildly positive, and Chinese shares little changed.

The E-Mini S&P 500 futures slipped 0.70 per cent, cancelling out a firmer lead from a strong Wall Street session overnight.

In a letter to US Federal Reserve Chair Jerome Powell, Mr Mnuchin said the $455 billion allocated to Treasury under the CARES Act should be instead available for Congress to reallocate.

Although the programmes were not used extensively, US central bank officials felt their presence reassured financial markets and investors that credit would remain available to help businesses, local agencies and even nonprofits through the pandemic downturn.

Mr Mnuchin's decision added to market anxiety about broader economic growth as data shows the early fast recovery from a historic plunge in the US economy is fading, with more than 10 million who had jobs in January still out of work.

Investor sentiment was also affected by data that showed COVID-19 hospitalisations across the US jumped by nearly 50 per cent in the last two weeks, threatening the recovery of the world's largest economy as cities and states began to impose lockdowns.

On Thursday, the Sensex had ended 1.31 per cent lower at 43,599.96 and the broader Nifty 50 down 1.29 per cent at 12,771.70, both snapping a four-day winning run.