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Sensex recovers 151 points; realty, IT, FMCG stocks rally

Sensex_6

Mumbai :After taking a day’s breather, the benchmark BSE Sensex today recovered by 151.15 points to close at 28,223.08, nearly two-week high, helped by rise in services sector activity last month and positive global cues.

Persistent foreign fund inflows also boosted sentiment.

“… buying interest in IT, healthcare, FMCG and auto counters alongside with recovery in realty space aided index to sustain at higher level,” said Jayant Manglik, President Retail Distribution of Religare Securities.

Services sector returned to growth in July, after two months of contraction, as new orders surged and hiring gathered pace to hit a two-year high rate, a survey showed.

The Nikkei India Services Business Activity Index increased to 50.8 in July from 47.7 in June, indicating the first rise in services activity in three months.

Meanwhile, foreign investors bought shares worth Rs 118.70 crore yesterday as per provisional data.

The BSE Sensex resumed higher at 28,138.04 and firmed up further to a high of 28,315.71 on initial strong buying, but it declined afterwards to 28,135.68 before ending at 28,223.08, showing a gain of 151.15 points or 0.54 per cent.

The 50-share NSE Nifty rose by 51.05 points or 0.60 per cent to 8,567.95.

The recovery in market was supported by gains in IT stocks, on growing expectations of a rate hike by the US fed. Wipro climbed 2.94 per cent, while Infosys rose 2.52 per cent.

Bharti Airtel ticked up 0.77 per cent after the company posted a nearly 40 per cent growth in consolidated net profit for the June quarter.

Nestle was back in the limelight, up 7.53 per cent, after the FSSAI-approved laboratory found Maggi noodles in compliance with safety standards.

Adani Enterprises went up on reports of a possible joint venture with Foxconn.

The broader markets shone as the BSE small-cap and mid-cap indices rose up to 0.96 per cent.

Globally, Asian stocks ended higher after the outcome of a monthly survey showed that China’s services sector showed continued strength in July. Key benchmark indices in Taiwan, South Korea, Hong Kong, Singapore and Japan were up 0.01 per cent to 0.46 per cent. In mainland China, China’s Shanghai Composite lost 1.65 per cent.

European stocks were trading higher tracking gains in Asia on the back of some robust data on China’s services sector. Key indices in Germany, France and the UK rose between 0.18 per cent and 1.02 per cent.

Pramit Brahmbhatt, Veracity Group CEO said: “Today local equities traded strong led by gains in software sectors. Market sentiments improved mainly after the private survey showed that India’s main service export industry rebounded back to growth in July.”

Out of the 30 Sensex pack, 20 stocks ended higher.

Major gainers for the day were Wipro (2.94 pc), Infosys (2.52 pc), Bajaj Auto (2.36 pc), Tata steel (2.28 pc), Lupin (2.08 pc), M&M (1.51 pc) and Hero MotoCorp (1.38 pc).

While Tata Motors (1.10 pc), Coal India (1.08 pc), SBI (0.99 pc), ICICI Bank (0.96 pc), Hindalco (0.91 pc) and BHEL (0.57 pc) were among the losers.

Sectorally, BSE realty rose by 3.31 per cent followed by IT 1.78 per cent, healthcare 1.55 per cent, teck 1.53 per cent, FMCG 1.41 per cent and auto 1.03 per cent.

The market breadth continued to remain positive as 1,803 stocks finished higher, while 1,152 declined and 108 ruled steady.

Total turnover moved up to Rs 4,501.29 crore from Rs 4,468.92 crore yesterday.

PTI