Sensex snaps 8-day losing streak, up 100 points; ONGC leads gain
Mumbai: Shrugging off poor IIP and inflation numbers, the Indian stock market today rose by over 100 points to snap its eight-day losing streak, on value-buying in ONGC, HDFC Bank, Tata Motors and RIL scrips.
The benchmark Sensex bounced back by notching up a gain of 100.47 points, or 0.52 percent, to end the day at 19,561.04. The index had lost 545 points in last eight sessions to mark its longest losing streak since May 2011.
The 30-share barometer resumed the day better but fell to a low of 19,438.53 after the news of fall in industrial output growth and rise in retail inflation trickled in.
Growth in industrial output contracted by 0.6 percent in December mainly due to muted activities in manufacturing and mining sectors. Retail inflation, on the other hand, remained in double digits at 10.79 percent in January, driven by higher prices of vegetables, edible oil, cereals and protein-based items.
But soon buying sentiment picked up, mainly in key stocks from refinery, pharma, PSU and auto segments.
ONGC led the 17 gainers in 30-share Sensex by rising 3.81 percent, followed by Sun Pharma, Tata Motors, Coal India and Bharti Airtel.
Brokers said investors bought fundamentally strong stocks available at attractive lower levels and ignored the lower industrial data and higher retail inflation.
"While this shows a poor performance on the industrial front, markets actually gathered an upward momentum. This suggests that the bad numbers are now factored in," said Nagzi K Rita, CMD, Inventure Growth and Securities.
Sectorally, the Oil and Gas index gained the most by rising 1.52 percent, followed by Healthcare that rose 1.19 percent and the PSU index which gained 1.15 percent.
Among other major losers, Jindal Steel closed over 3.3 percent lower.
The broad-based National Stock Exchange index Nifty rose by 24.65 points, or 0.42 percent, to close at 5,922.50.