Why the Sensex has rallied today initially and will the up move sustainable
Published On: Monday, March 2, 2020 | By: Team KnowMyStock
A drop of nearly 3 percent on Friday amid a global sell-off on coronavirus scare and fears that weak economic data from China over the weekend that could have sent the markets spiraling down further as they opened for trade today i.e.2nd March 2020. However, The S&P BSE Sensex, which hit a high of 39,083.17, up 786 points during the day, erased all its gains to settle at 38,144, down 153 points against Friday's close of 38,297.29. The over 600-point up move intra-day caught many by surprise. Thus it is confirmed that the markets over-reacted to the developments and sold-off in a panic mode on Friday. The rally on Monday, according to experts, could also be on account of short-covering. Most global markets suffered their worst weekly fall since the 2008 global financial crisis last week. The markets now seem to have realised that coronavirus may not be as bad a scare as it was made out to be. Another reason is the hope of a fiscal stimulus by global central banks to prop-up growth.
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