Market halts 9-day losing run; financial, energy stocks lead recovery

Tuesday, 14 May 2019

Index heavyweights Reliance Industries, ITC and SBI were mainly responsible for the recovery on bourses

Mumbai: Indian stock market bounced back after nine sessions of losses on Tuesday, with participants showing a keen interest in financial and energy stocks after benign inflation data kindled rate cut hopes in the RBI's June policy meet. 

Reclaiming some lost ground, the BSE Sensex rose about 228 points and the NSE Nifty closed nearly 74 points higher. 

Index heavyweights Reliance Industries, ITC and SBI were mainly responsible for the recovery on bourses. 

In percentage terms, however, Sun Pharma topped the chart with 5.87 per cent rise. Other major gainers include Bharti Airtel, Vedanta, IndusInd Bank, SBI and RIL -- rising as much as 5.40 per cent. 

On the flip side, TCS, HCL Tech, Bjaja Finance, Bajaj Auto and Infosys were among the top losers on the Sensex. 

Sectorally, telecom, energy and capital goods were the top three performers -- rising up to 2.81 per cent. 

The BSE Sensex started off the session on a positive note at 37,146.58 against the previous close of 37,090.82. Intra-day, the index touched a high of 37,572.70 and a low of 36,956.10. It finally settled the day at 37,318.53, gaining 227.71 points or 0.61 per cent. 

Similarly, the NSE gauge Nifty opened higher at 11,151.65 and touched a high of 11,294.75 and low of 11,108.30 during the session. It finally closed at 11,222.05, 73.85 points or 0.66 per cent higher. 

India's retail inflation in April was 2.92 per cent and it remained below the central bank's target for the ninth month, raising hopes of an RBI rate cut and helping investor sentiment to revive. 

Wholesale inflation too eased to 3.07 per cent in April on cheaper fuel and manufactured items. 

Assocham Deputy Secretary-General Saurabh Sanyal said, "Both WPI and retail inflation remain benign, well below the 4 per cent target of the RBI, making out a strong case for a rate reduction by the central bank next month". 

Sanctum Wealth Management Chief Investment Officer Sunil Sharma said, "European equities and futures in the US rebounded while most Asian equities continued to drag as investors try to gauge trade war developments. Indian markets saw a sharp reversal... Election result uncertainty remains and earnings growth has decelerated and clarity on market direction and strategy is only likely to come forward post election results." 

On Monday, Indian bourses had registered losses for the ninth consecutive session. 

In the last nine sessions, the Sensex had lost 1,940.73 points and the Nifty has given away nearly 600 points. 

The Tuesday's trade, mainly the first half of the session, was marked by intense volatility as investors appeared cautious weighing a host of headwinds like concerns on the macro-economic front, US-China trade war tensions and uncertainty over the election outcome. 

Meanwhile, the Indian rupee staged a mild recovery, gaining 7 paise to close at 70.44 against the US dollar on Tuesday. 

In Asia, all leading bourses witnessed mild to heavy sell-offs on Tuesday after US-China trade war further intensified. 

In a retaliatory move, China on Monday said it would raise tariffs on US goods worth nearly USD 60 billion. 

Brent Futures, global crude oil benchmark, traded higher at USD 70.89 per barrel, up 0.94 per cent, on concerns about supply disruptions in view of geopolitical tensions in the crucial oil-producing region of the Middle East. 

The escalating trade war between the US and China is causing more market volatility around the world. 

Foreign institutional investors (FIIs) net sold equities worth Rs 2,011.85 crore on Tuesday, while domestic institutional investors (DIIs) purchased shares to the tune of Rs 2,242.91 crore, as per provisional data. 

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