Sensex, Nifty snap 3-week losing streak on fresh buying
Mumbai: Both the benchmark indices — S&P BSE Sensex and CNX Nifty — snapped their 3-week losing streak and recovered by 802 points and 245 points, respectively on fresh buying on the back of positive global cues.
Small-cap and mid-cap counters too attracted heavy buying interest from retail investors as their indices out-performed the Sensex.
Besides, resumption of foreign capital inflows boosted market sentiments.
“Firm global cues combined with oversold positions in index majors triggered the rebound,” said Jayant Manglik, President, Retail Distribution, Religare Securities.
Reduction in crude oil prices and improvement in F&O liquidity, post a poor March expiry (-7 per cent return) provided the essential, said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.
Cut in petrol and diesel prices was another reason behind rise in the value of shares.
The Sensex opened higher at 27,655.79 and hovered in a wide range of 28,298.34 and 27,624.76 before concluding at 28,260.14, witnessing a sharp recovery of 801.50 points, or 2.92 per cent.
It had dropped by 1,990.31 points, or 6.76 per cent, in the previous three weeks.
The CNX 50-share Nifty also rose by 244.85 points, or 2.94 per cent, to close at 8,586.25.
It had dropped by 596.35 points, or 6.67 per cent, in the previous three weeks.
Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth Rs 487.73 crore, according to Sebi data.
In the overseas markets, European stocks were trading higher after a solid round of Eurozone manufacturing data for March.
27 scrips out of the 30-share Sensex pack ended higher while only three finished lower.
Stock markets remained closed on April 2 for “Mahavir Jayanti” and April 3 for “Good Friday.”
Major gainers were Bharti Airtel (6.86 per cent), Sun Pharma (6.72 per cent), HDFC (5.71 per cent), Tata Motors (5.38 per cent), ITC (4.79 per cent), Coal India (4.43 per cent), Axis Bank (4.31 per cent), Dr Reddy’s Lab (4.11 per cent), SBI (3.76 per cent), HUL (3.68 per cent), Larsen (3.42 per cent), Tata Power (3.26 per cent), Hero Motocorp (3.25 per cent), Wipro (3.15 per cent), Tata Steel (2.86 per cent), Reliance Ind (2.81 per cent), ICICI Bank (2.70 per cent) and Cipla (2.25 per cent).
Among the S&P BSE sectoral indices, Healthcare rose by 4.32 per cent, Realty (3.74 per cent), Bankex (3.37 per cent), PSU (3.35 per cent), Auto (3.30 per cent), FMCG (3.28 per cent), Capital Goods (3.19 per cent) and Oil & Gas (2.57 per cent).
Small-cap and Mid-cap indices also rose by 6.76 per cent and 3.77 per cent, respectively.
The total turnover at BSE and NSE dropped further to Rs Rs 8,236.17 crore and Rs 47,640.57 crore, respectively as against the last weekend’s level of Rs 16,906 crore and Rs 87,594.44 crore.
Forex: The rupee snapped its two-week gaining spree against the American currency by slipping eight paise to 62.49 per dollar on month-end dollar demand from importers coupled with fall in crude oil prices.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 62.55 as against weekend’s level of 62.41 and dropped further to 62.69 on initial heavy dollar demand.
However, the domestic currency trimmed its initial losses on selling of dollars by banks and exporters on expectation of good foreign capital inflows in view of rise in equity market and recovered to 62.48 before concluding the week at 62.49, still showing a loss of eight paise or 0.13 per cent.
It had gained 56 paise, or 0.89 per cent, in the previous two weeks.
The domestic currency moved in a range of 62.48 and 62.69 during the week.
In global markets, crude oil prices fell after Russia and Iran’s foreign ministers claimed a breakthrough in talks over Tehran’s controversial nuclear programme that could ease sanctions on the crude producer.
Meanwhile, the benchmark BSE Sensex rose by 801.50 points, or 2.92 per cent, to end the week at 28,260.14.
Meanwhile, forward dollar premium finished lower on receipts by exporters.
The benchmark six-month forward dollar premium payable in September dropped to 232-234 paise from 253.5-255.5 paise last weekend and far-forward contract maturing in March also moved down to 446-448 paise from 471.5-473.5 paise.
The RBI fixed the reference rate for the US dollar at 62.5908 and the euro at 67.5104 from last weekend’s level of 62.6069 and 68.1476, respectively.
Meanwhile, the rupee recovered against the pound sterling to end the week at 92.45 from 92.97 on last Friday and also bounced back to 67.18 per euro from 67.74 last weekend.
It also ended higher at 52.12 per 100 Japanese yen from 52.32 in preceding weekend.
Oils and Oilseeds: Groundnut oil prices rallied, while refined palmolein and industrial oils eased in an otherwise truncated Vashi oils and oilseeds wholesale market during the week under review.
Groundnut oil prices prices rallied amid sustained demand from stockists and retailers on the back ensuing festivities.
Refined palmolein eased owing to lower retail demand.
Castorseeds bold and castor oil commercial moved down modestly in a lacklustre as well as volatile trade following unsteady demand from shippers and soap industries.
Linseed oil maintained a steady trend in the absence of any large-scale demand from paint and allied industries.
The oilseeds market remained closed on Thursday and Friday on account of ‘Mahavir Jayanti’ and ‘Good Friday’, respectively.
In the edible oil segment, groundnut oil opened stable at Rs 940, later rose to finish at Rs 965 from previous weekend’s level of Rs 940 per 10 kg, showing a gain of Rs 25.
Refined palmolein also resumed steady at Rs 487, later drifted to settle at Rs 485 from its last weekend level of Rs 487, showing a marginal loss of Rs 2 per 10 kg.
Turning to non-edible section, castorseeds bold commenced steady at Rs 3,650, later declined to Rs 3,625 before closing at Rs 3,635 from last Saturday’s level of Rs 3,650, showing a modest loss of Rs 15 per 100 kg.
Castor oil commercial also opened stable at Rs 760, later eased to Rs 755 before finishing at Rs 757 from last weekend’s level of Rs 760, showing a loss of Rs 3 per 10 kg.
Linseed oil closed at its previous level of Rs 760 per 10 kg.