Sensex snaps 6-day losing streak, ends 31 points higher

Mumbai, November 3

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Indian markets ended a six-session losing spree as it recovered marginally from over a four-week low and gained 0.12 per cent in a choppy trade on the back of value-buying in blue-chips.

Higher Asian shares offered positive cues, but worries over weak quarterly results remained.

Mood brightened after core sector growth rose to a 4-month high of 3.2 per cent in September, brokers said.

Moody's Investors Service’s positive projections that the economy would grow at 7.5 per cent in the current fiscal and improve marginally in the following year also served to spread cheer. It’s upgrade of Indin Banking system’s credit outlook from negative to 'stable' also bolstered investor sentiments, helping the 30-share Sensex settling at 26,590.59, up 31.44 points. The gauge had lost 911.66 points in the previous six straight sessions on sustained foreign fund outflows amid muted Q2 earnings and a weak trend overseas.

The broad-based NSE Nifty also ended marginally higher by 9.90 points, or 0.12 per cent, at 8,060.70 after breaching the crucial 8,100-level.

"Indices snapped its past losing streak on the back of strong global indices and improved core sector growth. However, these couldn't sustain the gains as investors await the results of Bihar elections and continued selling by foreign investors weighed," said Gaurav Jain, Director, Hem Securities.

Brokers said investors resumed buying in battered blue-chips that turned attractive after a set of positive economic data, including those on core sector growth.

NTPC surged the most rising 2.15 per cent, followed by M&M, ONGC and Hindalco.

Sectorally, IT surged the most by rising 0.91 per cent, followed by oil and gas, PSU, power and healthcare.

In broader markets, small-cap and mid-cap indices ended with gains up to 0.39 per cent as investors widened bets.

Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 272.67 crore yesterday, provisional numbers showed.

Indices in other Asian markets, including those in Hong Kong and Singapore were higher, while Shanghai Composite declined 0.25 per cent. Europe was trading mixed in early session.   

Of the 30 Sensex components, 14 advanced.

Lupin fell the most by 1.38 per cent as Tata Motors, L&T, Tata Steel and Bharti Airtel too suffered losses.

The market breadth turned positive as 1,482 stocks gained, 1,217 lost while 129 ruled steady. The total turnover moved up to nearly Rs 2,581 crore from Rs 2,569.90 crore yesterday.

"Volatility continues to be high and the market is consolidating within a narrow range of 8000–8100, as if waiting for a direction. It is possible that such volatility will prevail till the outcome of the Bihar election is understood," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd.

"Exit poll results before the end of the week could provide some guidance before the actual outcome on November 8." — PTI