Snapping a seven-day losing streak, the benchmark BSE Sensex today rose over 128 points on value-based buying in auto, banking and metal shares on a day when the Bharatiya Janata Party (BJP) was trounced by Arvind Kejriwal-led Aam Aadmi Party (AAP) in Delhi assembly elections.

A positive macro-outlook also helped the market ended the day in green, brokers said.

Tata Motors surged about 4 per cent, logging the best gains among 30 Sensex constituents. It was followed by ICICI Bank with a rise of over 3 per cent.

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Other gainers which supported the BSE Sensex include Tata Steel, Tata Power, HDFC Bank, GAIL, Coal India, Infosys, ITC Ltd, L&T, M&M, SBI, Sesa Sterlite and BHEL.

On the other hand, 12 Sensex stocks ended down led by HDFC, NTPC, RIL, ONGC, Sun Pharma and Hindustan Unilever.

In volatile movements, the 30-share BSE barometer opened in the negative terrain. As foreign fund sold shares amidst early indications of the BJP heading towards a defeat in Delhi Assembly elections, markets saw choppy movements.

However, emergence of buying at “attractive” lower levels and some “short-covering” by speculators, helped the benchmark index stage a solid comeback, said brokers. The Sensex hit a high of 28,633.72 before again losing some ground to settle with a gain of 128.23 points, or 0.45 per cent, at 28,355.62.

Yesterday, market participants attributed the Sensex’s 490-point plunge to exit polls predicting BJP’s defeat in Delhi elections. In seven straight sessions, the index had lost 1,454.38 points as foreign funds and retail investors took cash off the table amid lower-than-expected third quarterly earnings by some bluechip companies.

The 50-share NSE Nifty after dipping below the 8,500-mark at the outset, staged a strong comeback to close 39.20 points, or 0.46 per cent higher at 8,565.55. Intra-day, it shuttled between 8,470.50 and 8,646.25.

“Though overall it was a choppy session, market breadth was slightly positive as investors cautiously did value buying after decent correction seen in last three weeks,” said Bonanza Portfolio, Associate Fund Manager, Hiren Dhakan.

A mixed trend at other Asian markets and a lower opening in European markets also influenced sentiments here.

Sectorwise, the BSE Banking index gained the most by rising 1.76 per cent, followed by Auto sector (up 1.75 per cent), Metal index (up 1.68 per cent) and Consumer Durables index (up 1.46 per cent) among others.

Meanwhile, Foreign Portfolio Investors sold shares worth net Rs 660.30 crore yesterday.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Market has taken a break from the sharp fall seen in the last few sessions which was led by poor quarterly results, Europe issue and doubts if we can have a rate cut in the near-term. All these issues continues, hence till the next few sessions as market concludes what can be expected from the coming budget, we can consolidate, since it can provide answers to many of these questions.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Highly volatile movements were witnessed in the bourses today. The markets opened lower tracking the weak global cues; fortunately Sensex tested its 50 day moving average support at 28044, and recovered.  The uptrend may continue because many sectors are already entered into the oversold region may help the Sensex and Nifty to move higher.
Nifty today closed at 8565, up around 39 points.  The market breadth stood flat as there were seen 1336 stocks advancing against 1392 stocks declining. The Nifty volatility index, India VIX stood at 21.1925 down around 3.73%.
Banking and Metals were the major gainers in the sectorial front, closed up around 1.96% and 1.83% respectively whereas mild selling were seen in IT and Oil & Gas sector, which ended down around 0.89% and 0.83% respectively.
In the stocks’ front, selling were seen in TCS and HCL Tech, closed down around 2.68% and 2.64% whereas buying were seen in Tata Motors and ACC which closed up around 3.88% and 3.85% respectively.
The FIIs were net sellers in the capital market segment, sold shares worth Rs 66.30 crore on Monday, 09 February 2015. On the other hand the DIIs were net buyers on 09 February 2014, bought shares worth Rs 469.55 crore as per the provisional data from the stock exchanges.
The European markets fell for a second straight day as the investors’ focus were drifted towards the Greece political situation. On the other side the US index futures were trading with a positive note.
Companies like BPCL, Hathway, Lovable, Escorts, Bata India, Voltas, Tata Invest, NCC, Powergrid, Natco Pharma, JBF Inds, Kwality, Rico Auto, Syndicate Bank, STC India, Arvind Remedies and Godrej Inds are likely to come out with their earnings tomorrow.

Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.
An anti-corruption party is headed for a stunning victory in the Delhi state elections in a huge setback for India’s Prime Minister Narendra Modi. We are expecting that the reform process will not stall, It’s good to have AAP on the winning side in Delhi as for this will act as a counter mechanism, AAP in Delhi and BJP at centre this will help drive the reform process on a track. Both the parties will try to prove themselves, AAP being a maiden party will try to give their best and overcome the failures of past. The market will continue to be volatile for time being as it has already discounted the news and has been giving correction since past few days. In our view regarding the correction in the market after result outcome, if we see the fast few days movement then we can figure it out that market has already corrected around 8 % as the news has already discounted. So further we didn’t see any such significant correction in the market on the down side, market will continue to be volatile and likely to remain in consolidation phase for the next few trading sessions. Investors should concentrate on fundamentally strong companies with great long-term growth potential and use the strategy of buying in dips.

Indian shares snap seven-day losing streak; shrug off Delhi election for budget

(Reuters) Indian shares rose on Tuesday, snapping a seven-day losing streak on value buying in blue-chips as investors shrugged off worries over an anti-corruption party’s win in Delhi elections and instead focussed on the upcoming budget.

An upstart anti-establishment party crushed India’s ruling Bharatiya Janata Party in an election for the Delhi assembly on Tuesday, smashing an aura of invincibility built around Prime Minister Narendra Modi since he swept to power last year.

Traders chose to focus on reforms in the upcoming federal budget on Feb. 28 when Finance Minister Arun Jaitley is widely expected to boost capital spending and offer tax breaks to an under-performing manufacturing sector.

The benchmark BSE index rose 0.45 percent, while the NSE index ended 0.46 percent higher after earlier marking their lowest levels in over three weeks.