Volatile Sensex snaps 2-day losing run, recovers 85 points
Mumbai : Market benchmark BSE Sensex today broke its two-day losing streak and closed nearly 85 points higher, a day after posting its biggest single-day plunge in nearly seven weeks, on emergence of buying in select blue-chips amid mixed global cues.
In a volatile session, FMCG, oil&gas, power, infrastructure, IT and healthcare sectors saw a fag-end buying, while realty, metal, auto and banking scrips witnessed selling.
The 30-share index yesterday plummeted 310 points to crack below the 28,000 mark, its biggest single-day fall in nearly seven weeks, on heavy profit-booking.
The benchmark index, which lost nearly 408 points in the previous two sessions, today resumed the session higher at 27,805.94 but succumbed to selling pressure and fell back to touch a low of 27,697.33 in an intra-day trade.
Later, on revival of buying towards the fag-end, the gauge wiped out losses completely to close the session 84.72 points, or 0.31 per cent, higher at 27,859.60 after rising to the day’s high of 27,902.39.
The 50-share NSE index Nifty too recovered 16.85 points, or 0.20 per cent to end at 8,592.15. Intra-day, it shuttled between 8,540.05 and 8,601.15.
Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services Ltd, said, “Indian markets look to have slipped into an event vacuum with none decisive enough to force a course correction. Consecutive days’ falls did render the stocks relatively cheap enough to attract value buying, but buyers were seen keeping the positions light ahead of the long weekend.”
Gains in Lupin, ITC Ltd, Asian Paint, ICICI Bank, TCS, NTPC, Hindustan Unilever, ONGC, Reliance Industries, HDFC Ltd, Axis Bank and Dr Reddy’s shares lifted the 30-share barometer higher.
SBI emerged biggest laggard of the day by falling the most by 1.97 per cent to Rs 226.95 as participants cut down their holdings ahead of Q1 earnings.
Adani Ports, M&M, GAIL, Sun Pharma, Bajaj Auto, Tata Steel, L&T, Tata Motors, Hero MotoCorp, Power Grid and Infosys too lost sizeable grounds and restricted the gains.
Shares of Bank of Baorda slumped 8.95 per cent after the company reported a massive 60 per cent plunge in standalone net profit for the first quarter ended June 2016.
Brokers said value-buying in recently beaten down blue-chip stocks, amid optimism ahead of IIP numbers for June and retail inflation data for July to be released tomorrow, helped indices to close back in the green.
Globally, other Asian stock markets ended mostly lower following a slump in oil prices on indications of oversupply.
Key indices in Hong Kong rose 0.43 per cent, while Shanghai Composite Index fell 0.53 per cent. Japanese financial markets were closed today for a national holiday.
European markets were mixed in their early trade with the the London’s FTSE falling 0.31 per cent, while Paris CAC gained 0.77 per cent. Frankfurt rose 0.60 per cent.
Among the BSE sectoral indices, FMCG gained the most by rising 1.44 per cent, followed by oil&gas 0.74 per cent and power 0.38 per cent.
While realty stocks fell 0.90 per cent, metal shed 0.68 per cent and auto 0.45 per cent.
Overall, 16 of the 30-Sensex constituents closed in the green.
The broader markets too were in a slightly better form with the mid-cap index rising 0.03 per cent, while small-cap index shed 0.02 per cent.
Stocks of AB Nuvo were in the limelight and surged 3.50 per cent on talks of restructuring plans.
Foreign institutional investors bought shares worth a net Rs 412.56 crore yesterday, according to provisional figures issued by the stock exchanges.