Sensex off 6-month low, rises 196 points; Nifty ends above 8,000
Sensex snapped its six-day losing streak by rebounding 196 points today on fresh buying in metal, realty, auto and energy counters and short covering ahead of November-series expiry amid improving global cues.
Mumbai: Sensex snapped its six-day losing streak by rebounding 196 points today on fresh buying in metal, realty, auto and energy counters and short covering ahead of November-series expiry amid improving global cues.
In the process, the index has come off its six-month low hit yesterday.
US stocks closed at fresh record highs overnight, aided by a jump in oil prices and a pullback in the dollar.
Covering-up of pending short positions by participants ahead of Thursday's November expiry in the derivatives segment too supported the recovery.
"Government's nod to relax demonetisation norms for farmers so as to save rabi crop brought in some positivity to the battered market, forcing bears to loosen the grip and sparking short covering," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.
However, caution prevailed amid growing concerns that the government's demonetisation move would hit the economy more than expected and the rupee losing strength against the dollar to close at near a six-month low of 68.25.
The Sensex opened higher at 25,928.16 and hovered in a range of 26,039.70 and 25,765.51 before ending at 25,960.78, showing a gain of 195.64 points or 0.76percent.
The index had dropped by 1,752.54 or 6.37percent in previous six sessions to reach six-month lows.
The NSE 50-share Nifty also recovered by 73.20 points or 0.92percent to end above the 8,000-level at 8,002.30.
However, foreign sellers continued their selling spree.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,310.82 crore yesterday, as per provisional data released by the stock exchanges.
Overseas, Asian markets gained in the wake of solid gains in US stocks, while the Japanese yen briefly strengthened after a powerful earthquake which rocked northern Japan appeared to have been taken in stride by investors.
Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan ended higher by 0.20percent to 1.3percent.
European markets were also trading higher in their afternoon trade as key indices in France, Germany and the UK moved up by 0.52percent to 0.83percent.