Sensex snaps 7-day fall, rebounds 128 points on value buying

Mumbai: Snapping a sevenday losing streak, the benchmark Sensex on Tuesday rose over 128 points on valuebased buying in auto, banking and metal shares on a day when the BJP was trounced by the AAP in Delhi assembly elections.

A positive macrooutlook also helped the market ended the day in green, brokers said.

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

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 30share 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 “shortcovering” 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 percent, at 28,355.62.

Yesterday, market participants attributed the Sensex’s 490point 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 lowerthanexpected third quarterly earnings by some bluechip companies.

The 50share NSE Nifty after dipping below the 8,500mark at the outset, staged a strong comeback to close 39.20 points, or 0.46 percent higher at 8,565.55. Intraday, 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 percent, followed by Auto sector (up 1.75 percent), Metal index (up 1.68 percent) and Consumer Durables index (up 1.46 percent) among others.

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

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