Sensex snaps 6-day losing streak, ends 31 points higher

Sensex snaps 6-day losing streak, ends 31 points higher

Mumbai: Market on Tuesday ended a six-session losing spree as it recovered from over a four-week low and notched up gains by over 31 points in a choppy trade on the back of value-buying in blue-chips.

Higher Asian shares offered positive cues, but worries over weak quarterly results remained.

Mood brightened after core sector growth rose to a 4-month high of 3.2 percent in September, brokers said.

Moody’s Investors Service yesterday said the economy would grow at 7.5 percent in the current fiscal and improve marginally in the following year, which too spread cheer.

It upgraded its credit outlook on India’s banking system to ‘stable’ from ‘negative’, which came as a big positive.

The 30-share Sensex swung heavily, before settling at 26,590.59, up 31.44 points, or 0.12 percent.

The gauge had lost 911.66 points in the previous six straight sessions on sustained foreign fund outflows amid muted Q2 earnings and a weak trend overseas.

The broad-based NSE Nifty also ended marginally higher by 9.90 points, or 0.12 percent, at 8,060.70 after breaching the crucial 8,100-level.

“Indices snapped its past losing streak on the back of strong global indices and improved core sector growth. However, these couldn’t sustain the gains as investors await the results of Bihar elections and continued selling by foreign investors weighed,” said Gaurav Jain, Director, Hem Securities.

Brokers said investors resumed buying in battered blue-chips that turned attractive after a set of positive economic data, including those on core sector growth.

NTPC surged the most rising 2.15 percent, followed by M&M, ONGC and Hindalco.

Sectorally, IT surged the most by rising 0.91 percent, followed by oil and gas, PSU, power and healthcare.

In broader markets, small-cap and mid-cap indices ended with gains up to 0.39 percent as investors widened bets.

Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 272.67 crore yesterday, provisional numbers showed.

Indices in other Asian markets, including those in Hong Kong and Singapore were higher, while Shanghai Composite declined 0.25 percent. Europe was trading mixed in early session.

Of the 30 Sensex components, 14 advanced.

Lupin fell the most by 1.38 percent as Tata Motors, L&T, Tata Steel and Bharti Airtel too suffered losses.

The market breadth turned positive as 1,482 stocks gained, 1,217 lost while 129 ruled steady.

The total turnover moved up to nearly Rs 2,581 crore from Rs 2,569.90 crore yesterday.

“Volatility continues to be high and the market is consolidating within a narrow range of 8000-8100, as if waiting for a direction. It is possible that such volatility will prevail till the outcome of the Bihar election is understood,” said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd.

“Exit poll results before the end of the week could provide some guidance before the actual outcome on November 8.”


[“source -Zeenews”]

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