Key indices snap 3-day losing streak

Positive cues from global markets and data showing expansion in the services sector last month helped key benchmark indices snap a three-day losing streak. The barometer index, the S&P BSE Sensex, jumped 318.53 points or 1.25% at 25,772.09, as per provisional closing data. The 50-unit CNX Nifty surged 106 points or 1.37% at 7,823, as per provisional closing data. Metal and banking stocks led rally for key benchmark indices which remained in green throughout the trading session.

Realty, cement and auto stocks edged higher. Shares of Vedanta group companies surged.

The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index was up 1.15%. The BSE Mid-Cap index was up 1.18%. Both these indices underperformed the Sensex.

As per provisional data, the S&P BSE Sensex was up 318.53 points or 1.25% at 25,772.09. The index jumped 381.85 points at the day's high of 25,835.41 in mid-afternoon trade. The index rose 102.21 points at the day's low of 25,555.77 in early trade.

The CNX Nifty was up 106 points or 1.37% at 7,823, as per provisional basis. The index hit a high of 7,845.60 in intraday trade. The index hit a low of 7,754.05 in intraday trade.

The BSE Mid-Cap index was up 123.14 points or 1.18% at 10,560.21. The BSE Small-Cap index was up 123.92 points or 1.15% at 10,873.55. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was strong. On BSE, 1,710 shares rose and 973 shares declined. A total of 138 shares were unchanged.

The total turnover on BSE amounted to Rs 2356 crore, lower than turnover of Rs 2596.85 crore registered during the previous trading session.

Bank stocks edged higher on renewed buying. Among PSU banks, Bank of Baroda (up 3.42%), IDBI Bank (up 3.63%), Canara Bank (up 1.88%), Bank of India (up 1.99%), Union Bank of India (up 1.73%), Syndicate Bank (up 1.48%), United Bank of India (up 1.41%), Punjab National Bank (up 0.89%), Andhra Bank (up 1.26%), and State Bank of India (up 0.69%) edged higher.

Among private sector banks, Axis Bank (up 4.08%), Kotak Mahindra Bank (up 3.36%), IndusInd Bank (up 3.64%), Yes Bank (up 1.63%), HDFC Bank (up 1.4%) and ICICI Bank (up 0.66%) edged higher.

Metal and mining stocks edged higher. Steel Authority of India (up 4.73%), Tata Steel (up 4.39%), Hindustan Zinc (up 3.51%), JSW Steel (up 4.47%), Hindalco Industries (up 3.15%), NMDC (up 2.19%), National Aluminium Company (up 3.09%) and Jindal Steel & Power (up 1.16%) gained.

Shares of Vedanta group companies surged. Cairn India surged 5.59% at Rs 149.30. Vedanta jumped 3.67% at Rs 97.35.

In overseas markets, European stocks surged on speculation that European Central Bank (ECB) President Mario Draghi will signal at a press conference after ECB's regulator monetary policy meeting later in the global day that the ECB is ready to expand measures aimed at bolstering inflation levels and boosting the eurozone economy if necessary. Earlier during the global day, Asian stocks nudged higher after a rally in US stocks overnight.

A favourable outcome of a monthly survey on the services sector also helped boost sentiment on the domestic bourses. The seasonally adjusted Nikkei Services Business Activity Index rose to 51.8 in August from July's 50.8, marking a second month above the 50-level that separates growth from contraction.

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