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Sensex snaps 6-day fall, up 150 pts; Nifty ends above 7800


TheNewsInternational Team

Sensex snaps 6-day fall, up 150 pts; Nifty ends above 7800

The market closed higher for first time in last seven consecutive sessions led by relief rally in beaten down stocks like banks, infra, metals, oil and select FMCG. It started off on a negative note on weak global cues post Paris attacks but managed to rebound in afternoon trade to take Nifty above 7800-mark and helped Sensex gain 256 points intraday.

The 30-share BSE Sensex climbed 149.57 points or 0.58 percent to 25760.10 and the 50-share NSE Nifty rose 44.35 points or 0.57 percent to 7806.60. The broader markets also gained strength as the BSE Midcap index was up 0.2 percent and Smallcap gained 0.5 percent.

The recent healthy correction is an opportunity for investors to buy quality stocks, feel analysts who remained bullish on market for long term.

Mahesh Nandurkar of CLSA expects the recovery to be slow, though the initial signs are visible. Over two years, market will deliver 15 percent compounded growth and will give 30 percent returns, he says adding that the key factor in growth will be capex recovery, which is expected to be slow. He expects further earning downgrades in the near-term.

On the global front, Asian stocks barring China ended in red as sentiment was badly dented by Friday’s brutal terrorist attacks in Paris. Nikkei lost 1 percent and Hang Seng declined 1.7 percent while Shanghai gained 0.7 percent. European markets were trading marginally higher despite terror attacks.

Back home, WPI inflation for October came in at negative 3.82 percent, which was in line with forecast (negative 3.82 percent) against negative 4.54 percent in September.

ITC was the leading contributor to Nifty’s gains, up 2.6 percent while Hindustan Unilever lost 1.6 percent.

Bank Nifty gained 1.5 percent, helping the Nifty 50 to reclaim 7800-mark. State Bank of India rallied 3.35 percent and ICICI Bank gained 2.1 percent. HDFC Bank was up 0.9 percent but Axis Bank lost 0.7 percent.

Among others, L&T, M&M, Dr Reddy’s Labs, GAIL, Tata Steel, Vedanta and Hindalco Industries were up 2-4.5 percent. The sell-off in TCS (down 1 percent), Infosys (down 1.9 percent) and Tata Motors (down 0.9 percent) limited upside.

Coal India was down 2 percent after its September quarter earnings missed analysts’ expectations due to lower e-auction realisations. Profit increased 16 percent and revenue rose 8 percent year-on-year. Brokerages remained bullish on stock despite lower-than-expected earnings. Citi has a buy rating on inexpensive valuations with a target price of Rs 455 per share. It is bullish due to higher volume trajectory up, auction of non-power linkages-pricing upside going forward and 6 percent dividend yield.

In broader space, Cadila Healthcare dropped nearly 4 percent after the company missed launch date for its anti-inflammatory drug Asacol HD generic.

Reliance Infrastructure gained 6 percent on signing agreement with Canadian pension fund to sell 49 percent stake in Reliance Energy.

Apollo Tyres rose 1.7 percent as India’s second-largest tyre manufacturer will buy German-based tyre retail and distribution company Reifencom GmbH for 45.6 million euro in all cash deal.

The market breadth remained positive as about 1372 shares advanced against 1260 declining shares on the Bombay Stock Exchange.

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