Sensex gains 366 points, banks stocks up

Mumbai, January 8: Positive global cues from Europe and the US pushed a barometer of Indian equities markets up, to end with healthy gains in Thursday’ trade session after three consecutive days of decline. The 30–scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) ended with healthy gains of 366 points or more than one and a half percent, on the back of positive global cues from the ECB (European Central Bank) and the US Federal Reserve. All sector–based indices of the S&P BSE ended with healthy gains.

The rally was led by banking, auto, healthcare, capital goods, fast moving consumer goods (FMCG) and metal stocks. “The markets today rebounded by cutting all previous day’s losses. The positive global cues and short covering kept the market firm,” said Alex Mathews, head research, Geojit BNP Paribas Fincial Services.

“The uptrend is likely to continue, but higher level selling can also be expected due to weak technicals.” The Sensex of the S&P BSE, which opened at 27,178.77 points, closed at 27,274.71 points, up 365.89 points or 1.36 percent from the previous day’s close at 26,908.82 points.

The Sensex touched a high of 27,316.41 points and a low of 27,101.94 points in the intra–day trade. “The rally in global markets was led by crude which halted its slide. Secondly, concerns about a Greek exit (Greexit) eased, after Germany left open the door to discussing options with Greece’s next government on its debt,” said Sanjeev Zarbade, vice president, private client group research, Kotak Securities.

The markets would next focus at the earnings season which starts on Friday with Infosys results, followed by the IIP (Index of Industrial Production) and inflation data in the next week.

In Thursday’s trade, the S&P bankex gained 434.63 points, auto index went up by 294.40 points, healthcare index surged by 169.97 points, capital goods index moved up by 156.89 points, FMCG index rose by 149.34 points, and metal index got augmented by 135.42 points. The wider 50–scrip Nifty of the tiol Stock Exchange (NSE) also closed the trade with healthy gains. It was up 132.50 points or 1.64 percent up at 8,234.60 points.

The major Sensex gainers were: Tata Motors, up 3.68 percent at Rs.512.20; ITC, up 2.52 percent at Rs.362.45; ICICI Bank, up 2.52 percent at Rs.347.25; Hindalco Inds, up 2.41 percent at Rs.152.70; and Gail, up 2.20 percent at Rs.430.30. Losers included Reliance Industries, down 1.47 percent at Rs.842.85. (IANS)