Sensex rebounds 109 pts on likely BJP win in M’rashtra, H’yana
Mumbai: Logging its first rise in three sessions, the benchmark Sensex today recovered 109 points to reclaim 26,000 mark on gains in banking, capital goods and consumer durable shares on hopes that state election results would give a much-needed boost to economic reforms.
Exit polls have predicted BJP would gain majority in recently-held Maharashtra and Haryana assembly polls. Brokers say this would improve Centre-State co-ordination and consolidate BJP’s position in Rajya Sabha, a key factor to push major reforms.
Smart rise in HDFC Bank, ICICI Bank, HDFC, L&T, SBI, M&M, Axis Bank, Hero MotoCorp, RIL, Bharti and Cipla shares mainly helped the market recover from two-month lows hit Thursday.
However, IT shares suffered a jolt after country’s largest software services exporter, TCS, yesterday announced below-market-expectations second quarter results.
The 30-share Sensex resumed lower on mixed Asian cues and touched a low of 25,910.77. It gradually started to bounce back and logged a high of 26,248.54 on firm European trends, up by 250 points. Later, it pared some gains and finally settled at 26,108.53, a rise of 109.19 points or 0.42 percent.
In previous two sessions, Sensex had shed 384.73 points.
The wide-based 50-issue CNX Nifty of the NSE also gyrated in a range between 7,819.20 and 7,723.85 before concluding at 7,779.70 — a net gain of 31.50 points or 0.41 per cent.
“Markets are awaiting state elections outcome on Sunday which could make a difference to stocks,” said Rajshekar Gowda, Senior Analyst, HBJ Capital.
Participants also drew some comfort from RBI Governor’s statement that India is seeing a pick-up in economic growth although more could be done to support that on a sustainable basis, according to Jayant Manglik, President-retail distribution, Religare Securities.
On a weekly basis, the Sensex fell for the fourth straight week and lost 188.85 points.