Market Gains for 5th Straight Session; Sensex Up 300 Points

Market Gains for 5th Straight Session; Sensex Up 300 Points

Mumbai: A drop in oil prices, strengthening rupee and pick up in domestic macros provided a positive momentum to the major indices which rose for the fifth straight session on Monday.

Global factors such as broadly positive Asian markets also lent support to the upward trajectory.

“Asian stocks traded higher ahead of the US Federal Reserve meeting this week while US stocks dropped sharply on Friday after a batch of weaker-than-expected economic data out of China and Europe sparked fresh worries of slowing global growth,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.

Index-wise, the S&P BSE Sensex settled 307.14 points higher at 36,270.07 points and the NSE Nifty50 gained 82.90 points to close at 10,888.35 points after touching a high of 10,900.35 points.

However, broader market indices like the BSE Mid-cap and Small-cap gained lesser than the barometer Sensex.

In terms of currency, the Indian rupee strengthened to 71.55 per US dollar from its previous close of 71.90.

Said Geojit Financial Services Head of Research Vinod Nair: “Market extended gains led by a strong rupee backed by narrowing trade deficit and inflow of foreign funds.

“Drop in oil prices, strengthening rupee and pick up in domestic macros are providing a positive momentum to the market. However, global market witnessed selling ahead of two days FOMC (Federal Open Market Committee) meet starting from tomorrow.”

Consequently, investors will remain cautious over the possibility of any impending hike in the US interest rates which can potentially drive away Foreign Portfolio Investors (FPIs) from emerging markets such as India.

On the investment front, Foreign Institutional Investors (FII) off-loaded shares worth Rs 60.95 crore on Friday while Domestic Institutional Investors (DII) sold stocks worth Rs 76.84 crore, provisional data from the BSE showed.

“Technically, with the Nifty rallying higher for the fifth consecutive session, the bulls remain in control. Further upsides are likely once the immediate resistances of 10,941 are taken out,” said HDFC Securities’ Retail Research Head Deepak Jasani. “Crucial supports to watch for any weakness are at 10,816.”

Sector-wise, finance counters gained 0.98 per cent while energy shares rose over 2 per cent, followed by metal, oil and gas, and power stocks gained over 1 per cent.

In contrast, IT and Teck (technology, entertainment and media) stocks ended lower.

Tata Motors (DVR) closely followed by Tata Motors gained the most among the 30-stock on Sensex. The shares of the automobile major Tata Motors settled over 4 per cent up after news that its subsidiary Jaguar Land Rover will go for cost-cutting measures.

It was followed by Power Grid, HDFC and Coal India which advanced in the range of 2 to 3.5 per cent.

In contrast, Kotak Mahindra Bank lost 2.50 per cent. Infosys and Bharti Airtel lost in the range of 1 to 2 per cent. (IANS)

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