Stocks end 3-day drop as IT, metal shares rise

After a three-session losing spell, market benchmark Sensex on Monday recovered over 21 points in a choppy trade to end at 28,082.34, helped by gains in metal, consumer durables and IT stocks as participants widened their bets ahead of macroeconomic data.

Optimistic purchases ahead of August IIP data due later in the day and investors’ upbeat sentiment after the second US presidential debate indicated Democrat Hillary Clinton was having an edge over Republican nominee Donald Trump also influenced the domestic market.

However, participants were seen trimming their portfolios at every rise in view of holiday-shortened week as stock exchanges will remain closed on Tuesday for Dussehra and on Wednesday for Muharram.

“Domestic market was in a lacklustre mood ahead of holidays and traded within a narrow range but with a positive bias. Macro data like IIP (later today) and CPI & WPI (later this week) will be keenly watched, while the focus would be on Q2 results which start this week,” Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said.

Metal stocks were back in demand on the bourses, tracking a firm trend in base metals in global market.

Among metal stocks, Tata Steel emerged top gainer by climbing 2.71 per cent to Rs 417.40, Vedanta surged 2.36 per cent to Rs 199.40, while Hindalco ended 1.65 per cent higher at Rs 160.65.

The broader NSE Nifty too regained the key 8,700-mark.

Globally, a firm trend was seen at Shanghai market which resumed trading after long holidays last week. Shanghai Composite Index rose 1.45 per cent, while Japan and Hong Kong financial markets were closed today for holidays.

European markets too were trading in positive zone in their afternoon deals and key indices like Germany, UK and France rose by up to 0.24 per cent.

The 30-share Sensex after opening higher at 28,144.28, advanced further to hit a high of 28,216.64. But it slipped partially to settle the session 21.20 points or 0.08 per cent, higher at 28,082.34.

The index had lost 273.41 points in the previous three sessions.

The broader NSE Nifty ended at 8,708.80, up 11.20 points or 0.13 per cent. Intra-day, it touched a high and a low of 8,745.80 and 8,703.95, respectively.

The recovery in Sensex was supported by gains in Asian Paint, Cipla, Infosys, Lupin, GAIL Dr Reddy’s, Maruti Suzuki, Power Grid, Sun Pharma, ITC Ld, TCS, M&M, HDFC Bank and Hero MotoCorop, perking up to 1.94 per cent.

From the 30-share Sensex kitty, 17 ended higher, while 13 led by NTPC, Bharti Airtel, RIL, Adani Ports, HDFC Ltd, SBI, Tata Motors, Bajaj Auto, Axis Bank and Hind Unilever ended in negative zone.

Sectorwise, BSE consumer durables gained the most, rising 1.69 per cent followed by metal (1.48 pc), IT (1.05 pc), teck (0.84 pc), healthcare (0.52 pc) and FMCG (0.03 pc).

In broader markets, the BSE small-cap rose 0.25 per cent while mid-cap ended 0.20 per cent down. Foreign portfolio investors (FPIs) bought shares worth a net Rs 56.25 crore last Friday, showed provisional data.