Sensex snaps four-day losing streak, jumps 104 pts

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Mumbai | Updated: July 29, 2015 5:27:37 PM

The BSE Sensex snapped a four-day losing streak on Wednesday to end 104.20 points up at 27,563.43 supported by continuing fall in crude prices. The broad-based NSE Nifty also ended higher by 38.05 points to 8,375.05.

bse sensexThe benchmark BSE Sensex opened on a positive note on Wednesday owing to strong global cues. (PTI)

The BSE Sensex snapped a four-day losing streak on Wednesday to end 104.20 points up at 27,563.43 supported by continuing fall in crude prices. The broad-based NSE Nifty also ended higher by 38.05 points to 8,375.05.

Oil prices fell for a sixth day on Wednesday to $53.06 per barrel.

Moreover, experts hoping that an imminent rate hike by the US Fed this year will have a minimal impact on emerging markets, including India, also boosted the market sentiments.

However, some investors remained cautious ahead of the US Fed FOMC meet outcome which is expected to come on Wednesday night.

Covering-up of outstanding short positions by traders in view of Thursday ‘s July’s month expiry in the derivatives segment too supported the recovery.

Asian stocks closed mixed with upward bias. Shanghai index rebounded 3.44 per cent after three sessions of losses.

European markets were too higher in late morning deals.

Tata Motors, Hindalco, Lupin, BHEL, Maruti Suzuki, Hero MotoCorp, L&T, Bharti Airtel, ICICI Bank, HDFC, Sun Pharma, Vedanta, Cipla, Axis Bank, Bajaj Auto and ONGC were among the top gainers.

What experts said about stock market performance today

Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd
The Market found immediate support in the continuing fall in crude prices. Meanwhile, the risk of a hike in US rates by Sept-Dec has largely been factored by the global markets. This is evident from the hike in global bond yields, the appreciation of the dollar and the sharp fall in commodities. During the year, US 10 YEAR yield increased by 60bps to 2.25%, while Dollex appreciated by 7% from the YTD low and the global commodity composite is at 10yrs low. Also expectations for a September hike have faded due to the tumult in Chinese markets and a fall in oil prices. The Indian Market is showing signs of moving higher, having fallen below the important level of 8500.

Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd
The markets on Wednesday remained in the positive zone as of consistent buying ahead of the July F&O expiry tomorrow. Better than expected corporate numbers from US and amid speculation of Federal Reserve to postpone interest rate hike supported the global markets.

Nifty closed at 8375 up around 38 point. The market breadth turned positive as there were seen 1654 stocks advancing against 1187 stocks declining. The Nifty volatility index, India VIX stood at 15.8775 down around 0.23%. The mid-cap and small cap sectors ended down around 0.89% and 0.83% respectively.

Capital goods and IT were the gainers in the sectorial front, closed up around 1.89% and 1.48% respectively. Losers on the end were Consumer Durables and FMCG which ended down around 1.92% and 0.82% respectively.

The gainers in the stocks’ front were BOSCHLTD and HCL Tech, closed up around 5.15% and 3.01% respectively.

The FIIs were net sellers in the cash market segment on 28 July 2015, Tuesday, sold shares worth Rs 1375.66 crore. The DIIs on the other hand were buyers on 28 July, bought shares worth Rs 665.05 crore in the capital markets segment.

The European markets rose for a second day ahead of the concluding of the two day meeting of US Federal Reserve’s monetary policy. The US index futures were also up.

On Thursday, companies like Nelco, Gabriel, Greaves Cotton, Nero;ac, Essel Propack, Star, NCC, Onmobile, Glenmark, Thomas cook, Ashoka Buildco, Gati, Dr Reddy, ITC, KRBL, IFB Industries, Kotak Bank, Orient Bank, GPPL, Nucleus, Indoco, Ipca Lab, Exide Ind and Shasun Pharma may announce their earnings.

Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
The recovery attempts continued today as well, with recent slippage attracting bargain hunting. Announcement of quarterly results have also kept investors interested, and FOMC fears were pushed to the background. The turmoil in financial markets in China as well as debt crisis in Eurozone is expected to have weakened Fed’s resolve to hike rate hikes soon, even as US economic data, atleast on the jobs front have begun to look encouraging. The Chinese equities did recover some lost ground, but concerns over the health of its financial market and economic prospects remained as recent economic data has been less encouraging. The indices in India recorded only modest gains, but the advance/decline ratio improved suggesting that recent falls have invigorated investors’ risk taking appetite.

Meanwhile, Gold has remained steady, waiting on the sidelines, in anticipation of the next move from US dollar or outcome of the ongoing FOMC meet. Rupee lost some of its gains, but stayed largely steady, after it strengthened sharply against US dollar.

Gaurav Jain, Director, Hem Securities
Markets remained volatile throughout the day ahead of derivative contracts expiry but managed to shut in green after four consecutive days of weakness. Rebound in global commodities prices boosted the sentiments globally. Investors stay cautious ahead of FOMC meet outcome which is expected to come tonight.

 

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