Press Trust of India
Snapping last four-week losing streak, markets benchmark indices Sensex and Nifty recovered 408 and 134 points respectively on fresh buying in rate-sensitive stocks amid rising hopes of a rate cut by the Reserve Bank. Signs of stability in China on hopes of a government stimulus also boosted the market sentiment. However, deficient monsoon worries, sustained capital outflows and weakening rupee restricted the Sensex gains.
The Sensex resumed higher at 25,302.98 but declined immediately below 25,000-mark for the first time in 15 months to 24,833.54 on Tuesday on Chinese worries. However, it recovered afterwards to 25,875.96 on fresh buying on hopes of reduction of interest rates by Reserve Bank of India (RBI) before concluding the week at 25,610.21, showing a gain of 408.31 points or 1.62 pct. It had dropped by 3,034.49 points or 10.75 per cent in previous four weeks.
The CNX 50-share Nifty also resumed higher at 7,685.85 but dropped immediately to 13 months low to 7,539.50. However, it recovered afterwards to 7,864.85 before concluding the week at 7,789.30, showing a gain of 134.25 points or 1.75 per cent. It had tumbled by 909.55 points or 10.62 per cent in previous four weeks. The meeting of Prime Minister Narendra Modi with industry captains, bankers and economists to discuss ways and means to support the economy amid a global slowdown gave investors a lot to chew on, which in turn boosted sentiment. Financial stocks took the centre-stage as speculation whirred around the possibility of the Reserve Bank going for a dilution of its proposed rules on base rates.
Finance Minister Arun Jaitley said the government over the next few days will make public a list of tax exemptions to be phased out so as to rationalise the taxation structure. Foreign portfolio investors (FPIs) continued their selling pressure as they sold shares net Rs 1,892.89 crore during the first four days of the week as per the SEBI’s record. Among the S&P BSE sectoral indices, Auto gained by 3.91 per cent followed by realty 3.75 pct, Capital Goods 3.36 pct, Bankex 3.02 pct, Metal 1.14 pct, Oil & Gas 0.94 pct and Information Technology 0.52 pct while, the losers were Consumer durables by 1.31 pct, FMGC by 1.30 and Healthcare by 1.26 pct. Among the 30-share Sensex pack, 22 shares gained, while rest declined in the week end.
