Markets rebound sharply, but suffer worst week since 2009

Indian stocks recovered strongly from an initial plunge to close about 4% higher on Friday, as investors picked the fallen stocks amid rising hopes of coordinated stimulus measures to contain the impact of the coronavirus outbreak.

The indexes plummeted more than 10% at the opening, triggering a trading halt for the first time since 2009, as panic over the pandemic gripped global markets.

The indexes swung wildly after trading resumed after a 45-minute halt, before staging the third biggest intra-day recovery in Indian market history with a 16.36% surge from the day’s low.

However, this was the worst week for the Indian markets since 2009 which was dominated by fears that the rapidly spreading virus could trigger a global recession.

The Nifty closed 3.81% higher at 9,955.2 on Friday, while the Sensex climbed 4.04% to 34,103.48. The indexes closed down more than 9% each for the week.

The rupee closed against dollar closed about 0.6% stronger at 73.84 after it had fallen to a record low of 74.5075 earlier in the session.

Helping turn the sentiment was moves by central banks from the United States to Australia to pump liquidity into their financial systems and as hopes grew that U.S. Democrats and Republicans could pass a stimulus package.