Sensex recovers 100 pts on narrowing CAD, global cues
Mumbai : Market benchmark Sensex rebounded by 100 points to finish at 26,625.91 on gains in FMCG, auto and realty stocks, driven by a lower current account deficit and trade gap coupled with revival in global cues.
For the week, the BSE Sensex shed 9.84 points while the NSE Nifty moved up by 0.15 points.
HDFC Ltd surged 2.21 per cent to Rs 1,227.80 after HDFC Standard Life Insurance said it had agreed with Max Financial Services and subsidiary Max Life Insurance to open merger talks. Max Financial jumped 10.29 per cent to Rs 472.80.
Sugar stocks fell sharply by up to 10 per cent after the government imposed 20 per cent customs duty on exports.
Oudh Sugar Mills tumbled 10 per cent, Dwarikesh Sugar plunged 6.38 per cent and Bajaj Hindustan slumped 4.13 per cent while Shree Renuka Sugars dipped 4.61 per cent.
Real estate stocks gained on hopes regulator Sebi will consider proposal for relaxed norms for REIT (Real Estate Investment Trust) and an easier set of compliance rules for foreign fund managers keen to relocate to India.
Major gainers in real estate space were DLF (2.63 per cent), HDIL (7.15 per cent) and Kolkte-Patil Developers (5.25 per cent and Indiabulls Real Estate (3.52 per cent).
Current account deficit yesterday narrowed sharply to USD 0.3 billion or 0.1 per cent of GDP in the fourth quarter of 2015-16 from USD 7.1 billion or 1.3 per cent in third quarter on account of lower trade gap.
The 30-share Sensex after opening higher at 26,653.85 continued to rise to hit a high of 26,730.55, but on profit- taking it slipped a little to close the day 100.45 points or 0.38 per cent higher at 26,625.91.
The NSE Nifty also gained 29.45 points or 0.36 per cent at 8,170.20 after shuttling between 8,195.25 and 8,135.80.
Shares of Bharti Airtel was the top gainer among Sensex constituents by surging 2.73 per cent to Rs 355.70 while Tata Motors jumped 2.03 per cent to Rs 463.20.
In broader markets, the BSE small-cap gained 0.29 per cent but mid-cap ended 0.05 per cent lower.
Elsewhere, key indices in Asia, like Hong Kong, Japan, Singapore were higher by up to 1.07 per cent while Shanghai Composite Index ended 0.43 per cent higher.
European stocks rebounded with traders saying odds tilted in the favour of Britain staying in the European Union.