Sensex closes 271 points up; automobile stocks rise

Mumbai, March 12 (IANS) Breaking a consecutive three-day losing streak, a benchmark index of Indian equities markets — the 30-scrip BSE Sensitive Index (Sensex) — made healthy gains during Thursday’s trade session.

The barometer index closed Thursday’s trade up 271.24 points or 0.95 percent as automobile, capital goods and consumer durables stocks made healthy gains. The markets rose after Asian markets made gains on the back of easing of monetary policy in South Korea and Thailand.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made healthy gains during the day’s trade. It closed 76.05 points or 0.87 percent up at 8,776 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 28,798.61 points, closed the day’s trade at 28,930.41 points, up 271.24 points or 0.95 percent from the previous day’s close at 28,659.17 points.

The Sensex had touched a high of 28,971.01 points and a low of 28,772.71 points in the intra-day trade.

All sector-based indices of the BSE made gains during Thursday’s trade session. Healthy buying was observed in automobile, capital goods, healthcare, consumer durables, metal, fast moving consumer goods (FMCG) and bank sectors.

The S&P BSE automobile index was up 238.47 points, followed by capital goods index which was higher by 216.59 points, healthcare index rose 188.89 points, consumer durables index went up by 152.99 points, metal index augmented by 138.26 points, FMCG index gained 107.18 points and bank index increased 103.68 points.

Analysts said the markets recovered on the back of low level buying after the continuous sell-off in the past few trading sessions. The positive Asian markets also provided support to the markets. The Asian front was up on the news of a record low interest rate by the South Korean central bank.

“Today the overall trend was positive as the market expects the insurance bill to be passed. The Budget Session is moving ahead with bold actions… the concern is to pass Coal and Land bills in the Rajya Sabha,” said Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services.

“We continue to believe that the trigger for India will depend on the final outcome from the Budget Session,” Nair said.

The day’s gains comes after three consecutive session of losses. On Wednesday, the Sensex closed 51 points or 0.18 percent down. It had closed Tuesday’s trade lower by 135 points or 0.47 percent, while on Monday it plunged 604 points or 2.05 percent.

The Indian markets so far this week had reacted negatively to the sharp increase in the US non-farm payroll data for January.

The Indian markets were anxious as rapid increases in non-farm payroll data might lead to an increase in inflation. This can make the US Federal Reserve raise interest rates sooner than previously expected.

With higher interest rates, foreign institutional investors will be led away from emerging markets such as India.

The major Sensex gainers on Thursday were: Sesa Sterlite, up 3.63 percent at Rs.200; NTPC, up 3.54 percent at Rs.159.50; Hindalco Inds, up 3.37 percent at Rs.134.85; Sun Pharma, up 2.46 percent at Rs.1,035.60; and Tata Motors, up 2.35 percent at Rs.564.05.

The losers were: DrReddy’s Lab, down 1.40 percent at Rs.3,422; Coal India, down 1.23 percent at Rs.364.75; Mahindra and Mahindra, down 1.06 percent at Rs.1,244.10; Bajaj Auto, down 1.01 percent at Rs.2,077.85; and Hindustan Unilever, down 0.73 percent at Rs.962.35.

Among the Asian markets, Japan’s Nikkei went up by 1.43 percent, Hong Kong’s Hang Seng closed higher by 0.34 percent and China’s Shanghai Composite Index, gained by 1.77 percent.

In Europe, London’s FTSE 100 was up by 0.87 percent, while Germany’s DAX Index was down by 0.24 percent and France’s CAC 40 was lower by 0.16 percent at the closing in the Indian markets.

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