Sensex ends above 27k after 1-1/2-month, commodity stocks zoom

Mumbai, October 7

A surge in mining and energy stocks on Wednesday pushed up Indian markets for the sixth day, helping BSE Sensex to scale back 27,000-level as global cues firmed on recovery in crude oil prices.

The BSE barometer index jumped by 102.97 points to close at 27,035.85 — a level not seen since August 21.

Mining and energy stocks surged after US oil approached USD 50 per barrel.

"Market believes that commodities have reached the depressed level post the correction led by downgrade in the world economy and concern over prospective US rate hike," said Vinod Nair Head-Fundamental Research at Geojit BNP Paribas Financial Services.

Hindalco was the top Sensex gainer with a rise of 9.64 per cent. Vedanta, Tata Steel and ONGC followed with rise of up to 5.83 per cent.

A big surge in rupee, which rose to a eight-week high of 64.95 against the dollar, and sustained foreign fund inflows also perked up market mood.

In volatile movements, the 30-share Sensex resumed higher at 26,966.86 but slipped into negative zone on profit booking in blue-chip stocks at prevailing levels and hit a low of 26,877.51.

However, it staged a comeback on revival of buying and went past 27,000 to hit a high of 27,082.28 before ending at 102.97 points or 0.38 per cent higher at 27,035.85.

In last five days, the index had gained 1,316.04 points.

The broader NSE Nifty gained 24.50 points or 0.30 per cent to settle at 8,177.40 after shuttling between 8,188.90 and 8,132.90.

Auto segment stocks also attracted good buying interest on expectations that the festive season would boost sales.

Bajaj Auto gained 3.14 per cent, Tata Motors rose 2.31 per cent and Maruti Suzuki climbed 0.32 per cent.

IT stocks continued to be under pressure from weak revenue guidance.

Overseas, European stocks edged higher, tracking their Asian counterparts as declining expectations for a US rate hike before the end of the year continued to support equities.

Key indices in France, Germany and UK rose between 0.62 per cent and 1.12 per cent. 

Asian stocks ended higher as oil prices rose, supporting battered commodity shares. Key indices in Hong Kong, Japan, Singapore, South Korea and Taiwan rose by 0.75 per cent to 3.13 per cent.

Back home, out of 30 Sensex stocks, 21 ended with gains.

Major gainers were Hindalco (9.64 pc), Vedanta (5.83 pc), Tata Steel (4.25 pc), ONGC (3.99 pc), Bajaj Auto (3.14 pc), Cipla (2.50 pc), BHEL (2.35 pc), Tata Motors (2.31 pc), M&M (2.13 pc) and RIL (2.00 pc).

However, Axis bank fell 1.92 per cent followed by Infosys 1.88 per cent, Wipro 1.78 per cent, Bharti Airtel 1.66 per cent, TCS 1.51 per cent, Dr Reddy's 1.12 per cent and Larsen 0.60 per cent.

Among the BSE sectoral indices, metal rose by 2.76 per cent followed by realty 1.90 per cent, auto 1.37 per cent, power 1.30 per cent and oil&gas 1.28 per cent, while IT fell by 1.63 per cent and teck 1.38 per cent.

The market breadth continued to remain positive as 1,691 stocks ended in the green, 1,061 finished in red while 108 ruled steady. The total turnover fell to Rs 3,250.25 crore from Rs 3,357.34 crore on Wednesday. — PTI