Global cues help markets snap losing streak

Mumbai: Equity indices regained footing on Monday after a three-session losing streak as investors snapped up banking, FMCG and IT stocks amid a positive trend overseas. However, a lacklustre rupee and unabated foreign fund outflows capped the gains.

Overcoming a choppy start, the 30-share BSE Sensex gained momentum as the session progressed to close 326.84 points or 0.62 per cent higher at 53,234.77. Similarly, the broader NSE Nifty rose 83.30 points or 0.53 per cent to 15,835.35. Market breadth was in favour of the bulls, with 24 of the 30 Sensex counters logging gains.

"Bulls rebounded sharply in the late session after firm European market sentiment coupled with fall in crude oil prices cheered investors. Despite the recovery, bearish-to-volatile sentiment will continue to prevail as FII outflows have remained buoyant, which is creating nervousness amongst the investors," said Shrikant Chouhan, head (equity research-retail), Kotak Securities Ltd.

Vinod Nair, head (research) at Geojit Financial Services, adds: "As we step towards the new earnings season, the prime focus of the market will turn towards quarterly numbers and updated guidance for the new financial year."

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 2,324.74 crore on Friday, as per exchange data.

Hindustan Unilever topped the Sensex gainers' chart with a leap of 4.03 per cent, followed by IndusInd Bank, ITC, ICICI Bank, PowerGrid, Axis Bank and SBI. In contrast, TCS, Tata Steel, Mahindra & Mahindra, Dr Reddy's, Tech Mahindra and Wipro closed with losses of up to 2.46 per cent.

In the broader market, the BSE midcap gauge gained 0.82 per cent and the smallcap index climbed 0.59 per cent. Among the BSE sectoral indices, FMCG gained the most by 2.49 per cent, followed by bank (1.08 per cent), capital goods (0.97 per cent), consumer durables (0.82 per cent) and industrials (0.74 per cent). Energy, healthcare, IT, auto, metal, oil & gas and teck were the laggards.