Equity indices snap 7-day fall on investors' bargain hunting (Roundup)

Bargain hunting by investors after seven consecutive days of losses propelled key Indian equity indices to close on a higher note on Thursday.

According to market observers, healthy buying in healthcare, banking and auto stocks added to the upward trajectory of the key indices.

The wider Nifty50 of the National Stock Exchange (NSE) closed higher by 100.15 points or 0.96 per cent at 10,576.85 points.

The 30-scrip Sensitive Index (Sensex) of the BSE closed at 34,413.16 points -- up 330.45 points or 0.97 per cent from its previous session's close.

The BSE market breadth was bullish with 2,197 advances and 625 declines.

In the broader markets, the S&P BSE mid-cap index edged higher by 1.82 per cent and the small-cap index by 2.25 per cent.

"Stocks advanced as bargain hunting emerged after seven straight sessions of sell-off in the domestic equities," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Sectorally, all the sectors of broader market have closed in positive trend and no sectors have showed any weakness for the day," he added.

Talking about the global markets, Jasani said all the Asian markets closed on a positive note, except for Taiwan and Shanghai, while the European indices like FTSE 100, DAX and CAC 40 traded in the negative territory.

Vinod Nair, Head of Research, Geojit Financial Services, said: "Market rebounded as prospects of economic growth and earnings revival encouraged investors to start accumulate equities."

"The 10-year-bond yield fell from yesterday's high of 7.61 per cent to 7.49 per cent and rupee strengthened which is positive for investors," Nair said.

On the currency front, the Indian rupee strengthened by two paise to close at 64.26 against the US dollar from its previous close at 64.28.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 2,297.09 crore while domestic institutional investors bought stocks worth Rs 2,373.59 crore.

"After several straight sessions of ending in the red, the Indian equity market shrugged off negative global cues and recouped some losses, majorly led by gains in shares of banks and pharmaceutical companies," said Karthikraj Lakshmanan, Senior Fund Manager - Equities, BNP Paribas Mutual Fund.

All the sectoral indices closed with gains barring the S&P BSE oil and gas index which fell by 38.61 points.

Sector-wise, the S&P BSE healthcare index surged by 405.77 points, followed by banking index by 324.24 points and auto index by 292.11 points.

Major Sensex gainers on Thursday were: Sun Pharma, up 6.32 per cent at Rs 583.40; Dr Reddy's Lab, up 3.18 per cent at Rs 2,178.95; State Bank of India, up 2.97 per cent at Rs 301.45; Infosys, up 2.33 per cent at Rs 1,134.55; and Axis Bank, up 1.75 per cent at Rs 568.50.

Major Sensex losers were: Power Grid, down 1.20 per cent at Rs 193.55; Tata Motors, down 0.70 per cent at Rs 374.85; NTPC, down 0.70 per cent at Rs 163.65; ONGC, down 0.66 per cent at Rs 188.55; and Adani Ports, down 0.43 per cent at Rs 405.

--IANS

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