Markets snap 3-day losing streak on stimulus hopes; log weekly losses : The Tribune India

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Markets snap 3-day losing streak on stimulus hopes; log weekly losses

MUMBAI: Snapping its three-session falling streak, market benchmark BSE Sensex rebounded 228 points on Friday on expectations of FPI tax rollback and some measures by the government to boost growth.

Markets snap 3-day losing streak on stimulus hopes; log weekly losses

The BSE Sensex closed higher by 228.23 pts or 0.63 per cent at 36,701.16. PTI file



Mumbai, August 23

Snapping its three-session falling streak, market benchmark BSE Sensex rebounded 228 points on Friday on expectations of FPI tax rollback and some measures by the government to boost growth.

The 30-share index, which had dropped over 350 points in opening trade, reversed course following an announcement that Finance Minister Nirmala Sitharaman will address a presser after market hours.

This fuelled speculations that the government would unveil measures to support the sagging economy and address tax concerns of market participants, traders said.

The BSE Sensex closed higher by 228.23 pts or 0.63 per cent at 36,701.16. The broader NSE Nifty rose by 88 points or 0.82 per cent to settle at 10,829.35, with 41 of its 50 constituents closing with gains.

However, both the key indices finished with losses for the week.

The Sensex lost 649.17 points, or 1.74 per cent, while the Nifty shed 218.45 points, or 1.98 per cent, during the week.

Vedanta was the top gainer in the Sensex pack on Friday, spurting 6.55 per cent. It was followed by Yes Bank (up 5.24 per cent), ONGC (4.66 per cent) and Mahindra and Mahindra (4.26 per cent).

Index heavyweight RIL advanced by 2.36 per cent and HDFC by 2.09 per cent, aiding the recovery.

IndusInd Bank was the biggest loser among Sensex scrips, declining by 1.9 per cent.

“Market reversed from six months low in expectation of supportive policies from the government. Change in scrappage policy to revive auto demand and roll back surcharges on FPIs can change the current sentiment of the market.

“Investors are having a muted expectation on Q1FY20 GDP data, it is a need of the hour to improve the business confidence of the country,” said  Vinod Nair, Head of Research, Geojit Financial Services.

Auto stocks recovered from losses after Transport Minister Nitin Gadkari clarified that there was no proposal to impose a deadline for the rollout of electric vehicles.

M&M rose by 4.26 per cent, Tata Motors by 3.25 per cent and Hero MotoCorp by 0.61 per cent.

Maruti Suzuki, which traded in the red for the major part of the day, wiped out losses to end higher by 0.69 per cent. The auto major announced recall of 40,618 units of WagonR to rectify issues with fuel hose mechanism.

IT major TCS jumped 1.47 per cent, while Infosys, HCL Tech and Tech Mahindra rose up to 0.75 per cent as the rupee traded near the 72-level.

SBI, which announced a cut in its term deposit rates, rose by 1.01 per cent.

FMCG stocks ITC and HUL dropped up to 1.71 per cent, limiting the index gains.

Among other stocks, Future Retail tanked 5.67 per cent after it announced that Amazon will buy 49 per cent stake in a promoter group firm Future Coupons.

BSE MidCap rose by 0.93 per cent to 13,080.60, while BSE SmallCap rose by 0.55 per cent or 66.68 points to 12,119.43.

BSE Metal was the biggest gainer among sectoral indices, rising by 3.49 per cent. Oil and gas gained 3.35 per cent, teck 1.16 per cent and basic materials 2.05 per cent.

Only three sectoral indices ended in the red—BSE FMCG (0.83 per cent), bankex (0.31 per cent) and capital goods (0.19 per cent).

The market breadth was positive as 1,322 scrips advanced out of 2,583 stocks traded on BSE. As many as 1,128 stocks declined. Total turnover in the equity market stood at Rs 2,199 crore on BSE.

On the global front, most of the Asian markets closed with gains ahead of a key speech by US Federal Reserve chair Jerome Powell. European markets were also trading in the green. PTI

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