Begin typing your search...

Benchmarks rebound on bargain-hunting, monsoon forecast, log 2nd weekly gains

Globally, Asian stocks were mixed, while the mood was cautious amid the US-China trade conflict.

Benchmarks rebound on bargain-hunting, monsoon forecast, log 2nd weekly gains


Markets clawed back lost ground today, with the Nifty soaring to a record close, as investors returned to buying mode after a steep two-day sell-off.

Consumption stocks spurted after the weather office  said monsoon rains will be normal in August and September, boosting growth prospects of the rural economy.

The BSE Sensex rebounded by 391 points to close at 37,556.16, while the broader NSE Nifty jumped 116.10 points to finish at a new lifetime high of 11,360.80.

Recently-battered bank and financial services shares saw renewed buying interest.

Strong earnings and upbeat services PMI data further buoyed sentiment, brokers said.

The 30-share Sensex stayed in the green throughout the session and hit the day's high of 37,582.27 on a flurry of buying. It finally ended at 37,556.16, up 391 points, or 1.05 per cent.

The gauge had lost 441.42 points in the previous two sessions after the RBI hiked the policy rate, making loans costlier for consumers, amid an escalation in the Sino-US trade conflict.

The NSE Nifty spurted 116.10 points, or 1.03 per cent, to end at a new record of 11,360.80. It surpassed its previous closing high of 11,356.50 hit on July 31.

It was the second straight week of gains for the benchmarks. The Sensex recorded a rise of 219.31 points, or 0.59 per cent, while the Nifty gained 82.45 points, or 0.73 per cent, during the week.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net of Rs 639.87 crore, while domestic institutional investors (DIIs) also sold equities to the tune Rs 340.30 crore yesterday, provisional data showed.

"Market turned to positive terrain after two days of selling as IMD's prediction of favourable distribution of rainfall and outperformance in banking stocks supported the rally.

"Further, consecutive growth in India's service PMI data and moderation in oil price supported the positive momentum in the market.

"On the other side, global market also recovered from yesterday's fall and investors are awaiting US job data to get clues on the pace of US Fed interest rate hikes," said Vinod Nair, Head of Research, Geojit Financial Services.

India's services sector activity remained in the growth territory for the second consecutive month in July, as business activity witnessed the strongest growth since October 2016, a monthly survey showed.

The seasonally adjusted Nikkei India Services Business Activity Index rose from 52.6 in June to 54.2 in July.

Shares of ONGC rose 0.48 per cent, a day after the firm reported a 58.1 per cent jump in net profit for the June quarter.

Axis Bank was the top gainer in the Sensex pack, surging 5.17 per cent, followed by Vedanta at 3.60 per cent.

Other prominent gainers included Yes Bank 2.96 per cent, ICICI Bank 2.33 per cent, Kotak Bank 2.20 per cent, HDFC 2.16 per cent, Coal India 1.94 per cent, ITC 1.57 per cent, SBI 1.56 per cent and TCS 1.37 per cent.

However, Tata Motors fell 0.84 per cent, Hero MotoCorp 0.71 per cent, Asian Paints 0.50 per cent, HDFC Bank 0.39 per cent, Wipro 0.32 per cent and IndusInd Bank 0.28 per cent.

Jet Airways nosedived 7 per cent following reports of the airline's financial woes.

All sectoral indices ended in the green, led by BSE bankex 1.64 per cent, consumer durables 1.52 per cent, metal 1.50 per cent, finance 1.44 per cent, healthcare 1.13 per cent, PSU 0.92 per cent, FMCG 0.80 per cent, teck 0.74 per cent and IT 0.74 per cent.

The broader markets too displayed a similar trend as investors accumulated stocks available at attractive levels. The BSE small-cap index advanced 1.16 per cent, while the mid-cap gauge gained 0.93 per cent.

Globally, Asian stocks were mixed, while the mood was cautious amid the US-China trade conflict.

Japan's Nikkei inched up 0.06 per cent and Taiwan rose 0.76 per cent, while Hong Kong's Hang Seng dipped 0.14 per cent and Shanghai Composite Index shed 1 per cent.

In the Eurozone, Paris CAC 40 and Frankfurt's DAX were up by 0.32 per cent and 0.49 per cent, respectively, in early deals. London's FTSE too jumped 0.64 per cent.

Visit to explore our interactive epaper!

Download the DT Next app for more exciting features!

Click here for iOS

Click here for Android

Next Story