Sensex breaks four-session fall on value buying

Photo: Shutterstock
Reversing a four-session slide, the benchmark Sensex closed positive at 32,870 on Monday, as investors cherry-picked recently beaten-down stocks in information technology (IT), metal and healthcare space.

Infosys was the top performer in the Sensex pack, rising 2.80 per cent, after the IT major announced the appointment of Salil Parekh as chief executive officer and managing director (CEO & MD).

Trading was volatile throughout the session, ahead of RBI's monetary policy review and Gujarat elections later this week. The central bank is scheduled to announce the fifth bi- monthly policy of the current fiscal year on December 6. A fresh spell of buying by domestic investors in recently beaten-down stocks helped the key indices to trade in the positive zone after four days of losses, brokers said.

After a strong start at 32,968.02, the Sensex reclaimed the 33,000-mark to hit a high of 33,008.62 points but profit-booking at higher levels capped the gains. It finally closed at 32,869.72, up 36.78 points, or 0.11 per cent. The gauge had tanked 891.50 points in the previous four sessions as upbeat second-quarter gross domestic product (GDP) numbers failed to dispel concerns over a widening fiscal deficit.

The 50-share NSE Nifty inched up 5.95 points, or 0.06 per cent, to 10,127.75 points. Intra-day, it shuttled between 10,179.20 and 10,095.70.

"Market was sidewise and finally settled with minor gains as investors remained watchful ahead of two days of RBI monetary policy starting from Tuesday. Rebound in IT stocks due to favourable developments in heavyweights gained investors confidence and capped the fall in the market," said Vinod Nair, head of research, Geojit Financial Services.

Major gainers were HUL 1.37 per cent, HDFC with 1.25 per cent and Tata Motors with 1.06 per cent.

Tata Steel, Bharti Airtel, ONGC, Dr Reddy's, Axis Bank, L&T, Adani Ports, SBI, Wipro, Hero MotoCorp and TCS also advanced by up to 1.03 per cent. Shares of Biocon surged 15 per cent after the biotechnology major said it has received regulatory approval to market a biosimilar of cancer drug Herceptin in the US.

Globally, in the Asian region, Hong Kong's Hang Seng gained 0.22 per cent while Japan's Nikkei shed 0.49 per cent. Shanghai Composite Index too shed 0.24 per cent. Among European markets, Frankfurt was up 1.06 per cent while Paris rose 0.85 per cent in their morning trade. London's FTSE too was up 0.79 per cent.

Sectorally, the BSE IT index gained the most by rising 1.37 per cent, followed by teck (1.08 per cent), metal (0.50 per cent) and healthcare (up 0.32 per cent), oil & gas (0.31 per cent) and consumer durables (0.30 per cent). Realty, power, banking and auto sectoral indices ended in the red.

The broader markets remained under pressure, with the small-cap index falling by 0.52 per cent and mid-cap 0.09 per cent.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 306.11 crore last Friday, as per provisional data. Domestic institutional investors (DIIs) also bought equities worth a net Rs 176.19 crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel