Sensex Snaps 8-Day Losing Streak, Gains 119 Pts
Mumbai, Nov 22: Snapping 8-day losing streak today, the BSE Sensex gained 119 points to regain the 16k level at 16,065.42 as investors bought stocks at lower levels ahead of the settlement of monthly derivative
Mumbai, Nov 22: Snapping 8-day losing streak today, the BSE Sensex gained 119 points to regain the 16k level at 16,065.42 as investors bought stocks at lower levels ahead of the settlement of monthly derivative contracts amid a firm trend in global markets.
The fall in rupee to record low level against the dollar boosted demand for IT stocks. The slide will push up the earnings of IT companies in rupee terms as they get up to 85 per cent revenues from the US and European markets.
Top three software exporters TCS, Infosys and Wipro rose 1.84 per cent, 2.33 per cent and 1.70 per cent respectively, contributing nearly 55 points to the Sensex rise.
The IT index was the top gainer with a rise of 107.07 points or 1.95 per cent. Sectorally, 10 of the 13 indices closed in the green, while BSE's Consumer Durables, FMCG and Power ended in the red.
The BSE 30-share barometer resumed higher amid some recovery in Asian stocks and improved further to a high of 16,212.95 on strong European opening.
However, late profit-booking trimmed the afternoon gains and it settled the day at 16,065.42, up 119.32 points or 0.75 per cent. In the last eight sessions, it had crashed 1,623.43 points or 9.24 per cent.
The NSE 50-issue index Nifty also gained 34 points or 0.71 per cent to end at 4,812.35.
“It was a good day, although highly volatile, for the markets after more than a week's selling carnage eroded the investor's wealth (by Rs 5.5 lakh crore),” said Shanu Goel, Senior Research Analyst at Bonanza Portfolio.
“Board-based buying was witnessed as short positions were covered and marketmen resorted to bargain buying in blue-chip stocks. Volatility associated with the derivative series expiry week was very much into play,” she added.
Meanwhile, the Reserve Bank described the rupee depreciation as “disruptive”. It will impact India's import bill, hitting oil firms. The immediate impact, however, will be on inflation, which has been hovering near the double-digit mark for several months, RBI added.
In Asia, markets in Hong Kong, Singapore and South Korea closed with small gains while from China, Japan and Taiwan finished with marginal losses.
European stocks were trading higher in their afternoon deals after rating agencies said the failure of the US lawmakers to reach an agreement on spending cuts wouldn't lead to another US credit downgrade. Key Indices in France, Germany and Britain gained up to 0.94 per cent.
In India, FIIs continued with the selling spree. They offloaded shares worth Rs 601.10 crore yesterday as per SEBI.
From the Sensex pack, Tata Motors was the top gainer with a rise of 6.91 per cent, followed by Jaiprakash (4.28 pc), Tata Steel (2.77 pc), DLF (2.58 pc), Hindalco (2.27 pc), Cipla (2.10 pc), HDFC (2.01 pc), Sterlite (1.85 pc), ICICI Bank (1.83 pc), Maruti (1.83 pc), CIL (1.68 pc), BHEL (1.20 pc) and RIL (1.04 pc).
However, Bharti dropped by 2.48 pc, Tata Power (2.29 pc), ITC (1.61 pc), Bajaj Auto (1.42 pc), HUL (1.33 pc) and M&M (1.13 pc). Sectorally, BSE-Metal rose 1.54 pc, Auto - 1.08 pct and Teck - 1.06 pc, Consumer Durables dipped 3.16 pc and the FMCG by 1.36 pc.
The market breadth, however, remained negative with 1,406 stocks losing ground, as against 1,350 ending with gains. The total turnover declined further to Rs 1,973.95 crore from Rs 2,078.91 crore yesterday.