Markets continue to cheer for 2nd day, Sensex spurts 161 points

Mumbai :The markets kept the feel-good factor alive for the second straight day as the benchmark BSE Sensex rallied 161 points to close above the 26,000 mark as investors got down to creating fresh long bets in the new September derivatives series.

Data showing the US economy grew at a faster clip than expected came as a positive. The GDP rose at an annual 3.7 per cent in the second quarter, beating all estimates.

Additionally, bouts of value-buying and covering-up of positions by speculators kept the momentum going.

The mood got a lift after other Asian markets ended firm tracking overnight gains in US stocks.

Value-buying by investors in several blue-chips propped up the index.

The 30-stock barometer scaled the session’s high of 26,687.33 following the start of the September derivatives series, but pared losses as profit-booking kicked in, before closing at 26,392.38, up 161.19 points, or 0.61 per cent.

The gauge had jumped 517 points in yesterday’s trade after the US Fed indicated a delay in rate hike.

Intra-day, NSE Nifty retook the 8,000-level to hit a high of 8,091.80, before ending higher 53 points, or 0.67 per cent, at 8,001.95.

In weekly terms, the Sensex lost 973.69 points, or 3.55 per cent, and the NSE Nifty 298 points, or 3.59 per cent.

For the Sensex, this is the biggest weekly loss in close to three months.

“Markets began trading for the September series on a positive note after encouraging trends from US markets. Cues from Asia were positive which helped in maintaining sharp gains recorded during the early part of trade,” said Shreyash Devalkar, Fund Manager Equities, BNP Paribas Mutual Fund.

Among Sensex constituents, Vedanta ruled the roost, up 5.7 per cent, followed by ONGC, Bharti Airtel and Bajaj Auto.

Of the 30-share Sensex pack, 20 ended in the green.

Of the BSE sectoral indices, technology gained the most by surging 1.76 per cent, followed by IT, infrastructure, auto, oil and gas and metal.

Broader markets advanced, with the BSE mid-cap adding 0.20 per cent and small-cap climbing 0.07 per cent.

Most Asian markets ended in the positive terrain, with Shanghai Composite closing up 4.82 per cent, while European stocks were trading weak in early trade. Foreign portfolio investors (FPIs) continued to take money off the table, net selling worth Rs 3,347.35 crore yesterday, according to provisional data.

“The Jackson Hole gathering of world’s central bankers is also expected to throw up cues that could set the trend of next week. Fed Vice-Chairman Stanley Fischer’s comments during this meeting would be closely watched for insights on Fed’s take on inflation now,” said Anand James, Co Head Technical Research Desk, Geojit BNP Paribas.

Sun Pharma tumbled most by 2 per cent, followed by Lupin, Coal India, TCS and L&T.

The market breadth turned marginally weak as 1,405 scrips declined as against 1,294 advances.

The total turnover went up to Rs 3,591.07 crore, from 3,015.30 Rs crore yesterday.