Sensex jumps by 239 points, Nifty ends 7 days of decline
Delhi Delhi. The benchmark Sensex jumped 239 points on Tuesday while the Nifty snapped a seven-day losing streak following value-buying in banking, IT and auto stocks amid mixed global trends.Snapping a four-day losing streak, the 30-share Sensex closed 239.37 points, or 0.31 per cent, higher at 77,578.38. The index opened with a gain and surged 1,112.64 points, or 1.43 per cent, to hit an intraday high of 78,451.65. However, a late decline in Reliance Industries limited the market’s upside.
The NSE Nifty also bounced back after seven consecutive sessions of decline. The 50-scrip index closed 64.70 points, or 0.28 per cent, higher at 23,518.50. The index jumped over 300 points during the day to hit a new high of 23,780.The stock market witnessed a decline in the last seven sessions, with the Nifty falling over 1,030 points or 4.3 per cent on FIIs selling, lower-than-expected quarterly results and strong US bond yields. The Sensex dropped over 3,000 points to 77,300 during this period.
“The strong comeback on the back of bottom fishing was short-lived, as the market remains cautious. Investors use every opportunity to book profits amid persistent FIIs selling and weak second quarter earnings. Profit-booking was also witnessed ahead of the upcoming Maharashtra state election,” said Vinod Nair, Head of Research at Geojit Financial Services.The recent improvement in valuations suggests a reduced likelihood of further price correction. However, recovery will depend on earnings growth, which is likely to pick up again in the second half due to a likely surge in central and state expenditures, Nair said.
Among the 30-share Sensex pack, Mahindra & Mahindra, Tech Mahindra, HDFC Bank, Titan, Tata Motors, UltraTech Cement, Power Grid and Infosys were the top gainers.In contrast, Reliance Industries, State Bank of India, Bajaj Finserv, Maruti, Tata Steel and Bharti Airtel were among the laggards.According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 1,403.40 crore on Monday, while domestic institutional investors (DIIs) bought shares worth Rs 2,330.56 crore.
The BSE midcap gauge rose 0.94 per cent and the smallcap index 0.90 per cent.Among sectoral indices, realty gained 1.45 per cent, followed by auto (1.41 per cent), services (1.24 per cent), consumer discretionary (1.21 per cent), consumer durables (1.01 per cent) and healthcare (0.67 per cent).Metals, oil & gas and energy sectors declined.
