Sensex snaps losing streak, rises 117 pts

The Bombay Stock Exchange (BSE) Sensex on Monday snapped its four-session losing streak and rose 117 points to 18,314, in line with global markets, after the US government averted a debt default crisis that had worried investors the world over.

Several heavyweights like RIL, Infosys, SBI and Tata Motors attracted good buying. Sectorally, IT, teck and auto segments were the best performers.

Having lost 674 points or 3.57 per cent in the previous four trading sessions, the BSE 30-share barometer opened sharply up and touched a high of 18,440.07. However, profit booking pulled the Sensex down to close at 18,314.33 — a gain of 117.13 points, or 0.64 per cent.

Similarly, the NSE 50-issue Nifty recovered 34.80 points, or 0.63 per cent, to 5,516.80.

Most of the IT stocks were in demand as about 60 per cent of India’s software services export is to the US market. Some auto scrips were in demand on improved sales in July.

“Global markets witnessed smart rally after the US government announced a deal with Congress leaders to allow the federal debt limit to be raised to avert a default,” said Parag Doctor, Associate V-P at Motilal Oswal Securities.

“However, Indian market witnessed lack of buying interest on concern of growth, quarterly results and monsoon,” he added. Metals continued to attract selling on weak prices at the London Metal Exchange as well as poor Q1 results by SAIL and Jindal Steel and Power.