Sensex snaps 3-day losing streak; up 164 points on global cues

Mumbai: The benchmark Sensex today rose 164 points, snapping a three-day losing run, with energy, auto, metal and capital goods stocks leading the recovery on strong global cues. Brokers said sentiment was upbeat in sync with a rebound in global markets ahead of the important vote for the healthcare bill in the US House of Representatives that could be a pointer to future policies of the Trump administration. The market sentiments also got a leg up after reports suggested that the government may table GST-related supplementary legislations soon in Parliament.

Karthikraj Lakshmanan, Senior Fund Manager Equities, BNP Paribas Mutual Fund said, “After four consecutive days of negative sentiment, stock markets in India traded with some strength today. Benchmark indices opened the day in the green and traded in the positive zone through the day to finally close with gains of over ~0.25 per cent. “A host of factors, dominated by a stable, pro-reform government at the Centre, has made India the destination of choice for foreign investors looking to gain exposure to emerging markets.”

Vinod Nair, Head of Research, Geojit Financial Services Ltd said, “Market regained some weight from yesterday s fall due to steady global market ahead of a key vote on US health care bill later today. Continued inflow of FIIs to domestic market has given some stability while investors are also looking for fresh triggers for the sustainability of the rally. Bets on corporate results and stability in global market will be the focus for further upside.” After a gap-up opening at 29,201.01 points, the Sensex advanced to hit a high of 29,373.79.

However, profit-booking towards the close made it touch a low of 29,198.08 before it settled at 164.48 points, or 0.56 per cent higher, at 29,332.16. The 30-scrip gauge had lost 481.31 points in the previous three sessions. The NSE Nifty moved up 55.85 points today to close at 9,086.30. Indicating an across-the-board buying, all the sectoral indices, except FMCG, ended in the green.

Among the 30 Sensex constituents, Tata Motors topped the gainers’ list by surging 2.59 per cent, followed by GAIL 2.39 per cent and NTPC 2.27 per cent. Other major gainers were, Wipro, Lupin, Hero Motocorp, Tata Steel, Infosys, Coal India, RIL, L&T, Adani Ports and ONGC gaining up to 1.60 per cent.

TCS, ITC, Bharti Airtel and Hind Unilver, however, closed down. The mid-cap and small-cap indices also rose higher. Tracking overnight recovery in the US, Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng also saw gains. European markets also appeared moving higher with markets in Germany, France and the UK showing initial gains.