Sensex logs first rise in 3 sessions, rebounds 120 pts
Mumbai : Market benchmark Sensex today reversed its two-day falling trend and ended higher by over 120 points and NSE Nifty regained the 8,600-mark, with auto and capital goods stocks leading the recovery on late-buying.
However, a lower opening in Europe and a mixed trend in Asia forced investors to adopt a cautious stance amid indications that the US Federal Reserve could increase interest rates by the end of this year. A higher rate would temper capital flows to emerging markets, including India.
The 30-share Sensex slipped in early trade as investors indulged in trimming their positions amid a weakening rupee against the dollar. However, some value-buying took the barometer to 27,902.66 at the close, up 120.41 points, or 0.43 per cent. Intra-day, it hovered between 27,698.71 and 27,952.85.
Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services, said, “Market had started on a negative note due to the uncertainty over the timing of FED interest rate hike. Globally, European and American markets were weak. But surprisingly, Indian market rallied in the last hour by 0.7 per cent from the day’s low, largely due to short-covering in sectors like auto and other stock specific action.”
The 30-scrip bundle had fallen 277.69 points in the past two sessions as investors chose to stay on the sidelines awaiting cues on US rate hikes in Fed Chair Janet Yellen’s speech at bankers’ meet last week.
Tata Motors stayed in the lead among Sensex stocks by gaining 4.18 per cent to Rs 524.70 as investors widened their bets after its unit Jaguar Land Rover reported favorable quarterly figures on Friday.
Other gainers were RIL (2.85 per cent), Hero MotoCorp (2.81 per cent), ICICI Bank (2.06 per cent), L&T (1.99 per cent) and Adani Ports (2.31 per cent).
However, IT stocks such as Wipro and TCS were among biggest laggards and lost by up to 2.33 per cent.
The NSE Nifty gained 34.90 points, or 0.41 per cent, to 8,607.45 after shuttling between 8,543.75 and 8,622.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 341.35 crore on Friday, as per provisional data.
Of the 30-share Sensex pack, 19 ended higher and 11 other finished in negative terrain.
Among BSE sectoral and industry indices, auto stocks rose by 1.44 per cent, followed by capital goods 1.17 per cent and metal 1.07 per cent. Oil and gas rose 0.38 per cent, PSU 0.26 per cent, consumer durbales 0.26 per cent and banking 0.24 per cent.
In line with overall trends, broader markets too showed a firm trend as mid-cap and small indices gained by 0.49 per cent and 0.09 per cent, respectively.
Globally, Japan’s Nikkei ended 2.30 per cent higher while Hong Kong’s Hang Seng closed 0.38 per cent lower. China’s Shanghai Composite shed 0.01 per cent.
European shares dropped in their early trade as analysts pondered the implications of a key speech by Federal Reserve Chief on interest rates. In Europe, Paris and Frankfurt markets were down up to 0.80 per cent. London market was shut for a bank holiday.