Markets snap 3-week losing streak on fresh buying

Mumbai: Markets snapped 3-week losing streak on fresh buying at the current levels on the back of firm trend in the global markets on hopes that the US Federal Reserve would raise rates in December.

The 7th Pay Commission report recommended a 23.55 percent hike in pay and allowances for Central government employees, lifting spirits.

Shares of Refinery, FMCG, Capital Goods, Consumer durable, Auto and Power sectors firmed up on good buying enquiries.

"The buying interest was in response to the Seventh Pay Commission's recommendations which will boost consumption in the economy, going forward," said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.

Meanwhile, wholesale price index-based inflation stood at (-)3.81 percent in October, as against (-) 4.54 percent in September, boosting investor sentiment as an uptick in October inflation showed signs of a revival in consumer demand.

"Rise in crude prices fuelled by geo-political tension has lifted sentiment globally. Finance Minister's assurance of achieving fiscal deficit target of 3.9 percent of gross domestic product for the current fiscal bolstered confidence of investors", said Gaurav Jain, Director, Hem Securities.

The Sensex resumed resumed lower at 25,580.15 and fell to a 2-month low of 25,451.42 on worsening global risk environment. But, recovered immediately to 26,058.76 on low level buying before finishing the week at 25,868.49, showing a gain of 257.96 points or 1.01 percent.

The Sensex had tumbled by 1,860.28 points or 6.77 percent in previous three weeks.

The 50-share Nifty also rose by 94.30 points or 1.21 percent to 7,856.55. The Nifty had also fallen by 533.20 points or 6.43 percent in previous three weeks.

Foreign portfolio investors (FPIs) continued their selling spree during the week as they sold a net Rs 2,464.43 crore as per the SEBI's record including the provisional figure of November 20.

From the 30-share Sensex pack, 20 stocks rose and 9 were losers, while Tata Motors closed unchanged during the week ended yesterday.

Major gainers were Gail India (23.14 percent), Vedl (6.76 percent), M&M (5.27 percent), ITC (4.54 percent), Cipla (4.42 percent), Bajaj Auto (3.51 percent), Tata Steel (3.40 percent), Wipro (3.03 percent), NTPC (2.83 percent), Larsen (3.57 percent), Maruti (2.48 percent) and HDFC (2.16 percent).

However, Axis Bank fell 5.07 percent followed by Infosys 4.32 percent, Sun Pharma 2.06 percent and HeroMotoco 1.81 percent.

Among the S&P BSE sectoral indices, Power rose 4.59 percent, Oil&Gas by 4.28 percent, FMCG by 2.81 percent, Capital Goods by 2.35 percent, Consumer Durables by 2.15 percent, Auto by 2.02 percent, Metal by 0.68 percent, Healthcare by 0.64 percent and Banking 0.56 percent, while Realty fell by 1.46 percent followed by IT by 1.11 percent and Tech by 0.53 percent.

The BSE Mid-cap index rose 204.93 points or 1.93 percent to settle at 10,858.41 and the BSE Small-cap index also gained by 242.27 points or 2.17 percent to close at 11,367.71. Both these indices outperformed the Sensex.

The total turnover at BSE and NSE recovered to Rs 13,611.90 crores and Rs 77,391.75 crores respectively from last weekend's level of Rs 9,089.11 crores and Rs 54,951.43 crores.