Indian shares clocked broad-based gains on Friday, rebounding from a sharp fall in the previous session in the backdrop of improving economic growth forecasts.
The NSE Nifty 50 index , which fell more than 1% on Thursday, was up 0.37% at 12,820.75 by 0405 GMT, while the S&P BSE Sensex climbed 0.41% to 43,782.50.
The BSE Sensex tanked 580.09 points on Thursday, closing at 43,599.96. On the other hand, the Nifty50 fell 166.60 points, reaching 12,771.70. Most of the sectoral indices plunged on Thursday.
It is to be seen how the market performs today. Here are some of the factors affecting the economy.
Rising COVID-19 infections
The increasing number of COVID-19 cases in India and in various countries across the world are taking a toll on the economy. Western markets are facing the impact of rising coronavirus infections and this in turn, are affecting sentiments in India and Asian markets.
US Treasury Secretary’s statement on pandemic relief
US Treasury Secretary Steven Mnuchin suggested that pandemic relief for struggling businesses should end. Owning to his statement, global stocks came under pressure. This sparked a clash between the central bank and Treasury.
Oil prices dwindled on Friday amid concerns that demand will be hit due to rising COVID-19 cases, leading to imposition of lockdowns in some countries. However, signs of movement on a stimulus deal in Washington provided some support to oil prices. West Texas Intermediate went down 0.2 per cent, standing at $41.65 a barrel by 0039 GMT.
GDP in second quarter
Rating agency ICRA on Thursday stated that India’s gross domestic product (GDP) may have contracted to 9.5 percent in the second quarter. GDP contracted 23.9 per cent in the first quarter.
Investment in LNG stations
Oil Minister Dharmendra Pradhan said on November 19 that an investment of Rs 10,000 crore will go into setting up of LNG stations. LNG will not only reduce cost of transportation but will also lower emissions.
“In the next three years, Rs 10,000 crore will be spent on setting up of 1,0a00 LNG stations in the private and public sector,” he said.
Indian capital market witnessed an increase in investments through participatory notes (P-notes). It rose to Rs 78,686 crore at October-end because of global liquidity and measures put in place by the Indian government.