Sensex snaps 3-day losing streak, up 35 points

Snapping a three-day losing streak, stock markets closed in the green today, taking cues from European stocks, higher US index futures and encouraging export data.

After losing 312 points in the last three days, the Sensex rose 35 points to 16,912. The Nifty climbed nine points to 5,042. Information technlogy, metal and auto counters exhibited strength.

European indices edged up around 1 per cent. The Dow futures were also trading marginally higher ahead of the Fed meeting and data on US consumer prices. The US markets snapped a four-day winning streak overnight as an inflation report led to fears of rise in interest rates. The Dow closed down 49.05 points and Nasdaq shed 11.05 points. Asian stocks ended mixed.

The leading gainers on the Sensex were Tata Motors (stronger by Rs 21 or 3 per cent at Rs 709), M&M (higher by Rs 29 or 2.8 per cent at Rs 1,046) and Bharti Airtel (up Rs 8 or 2.8 per cent at Rs 325). Tata Steel, Wipro and TCS also ended strong.

Bharti Airtel gained on reports that it was buying a 70 per cent stake in Bangladesh’s fourth-largest telecom company, Warid Telecom, for $900 million.

However, banks extended losses on fears the central bank may tighten policy sooner than expected on concerns about rising inflation.

The Reserve Bank of India might tighten monetary policy in December as inflation could rise to near 7 per cent in March, the prime minister’s economic adviser, C Rangarajan, was quoted as saying in a report.

Top lender State Bank of India fell 1.3 per cent, while ICICI Bank and HDFC Bank shed 0.3 per cent and 0.4 per cent, respectively.

Tata Steel climbed 2.1 per cent to Rs 557.55 after its European unit Corus said it had got €350-million contract to supply rail tracks to French operator SNCF.

Among the major losers were Jaiprakash Associates, which weakened by Rs 4 or 2.3 per cent at Rs 217. ITC was down 1 per cent at Rs 249.

The market breath was neutral. Out of 2,890 stocks traded on the BSE, there were 1,418 advances and 1,382 declines.

Gul Tekchandani, investment consultant, said, “It is difficult to predict the market direction on a day-to-day basis, but the uptrend remains intact over the longer term. Infotech and pharma stocks should continue their out-performance.”