Partial recovery halts 3-day losing run

Mumbai : Benchmark Sensex bounced back from early lows to close higher by nearly 376 points on Monday, snapping its four-day losing run following a rally in blue-chips ICICI Bank, HUL and HDFC Bank. The 30-share BSE Sensex rebounded 375.61 points or 0.46 per cent to settle at 81,559.54. The index opened lower and hit a low of 80,895.05 points in early trade due to weak global trends. Later, it recovered from lows and jumped 469.43 points or 0.57 per cent to hit the day's high of 81,653.36 as European markets opened with gains. The NSE Nifty went up by 84.25 points or 0.34 per cent to finish at 24,936.40 after three days of fall. “Despite a negative opening amidst weak global cues, the domestic market exhibited some recovery from last week’s steep fall. The market is currently attempting to gain stability between potential rate cuts and recession fears in the US,” said Vinod Nair, head (research), Geojit Financial Services. In the broader market, the BSE smallcap gauge declined 0.65 per cent and midcap index dipped 0.28 per cent.

“Nifty snapped a three-day losing streak on Monday and ended in the positive. Global stocks staged a partial recovery Monday after a selloff triggered by cooling US jobs data on Friday. Asian stock markets on Monday dived early as selling pressure mounted after concerns over lower-than-expected US payroll growth were compounded by a slowdown in China and Germany,” said Deepak Jasani, head (retail research), HDFC Securities.

Among the indices, FMCG surged 1.65 per cent, bankex jumped 1.15 per cent, consumer durables (0.73 per cent), financial services (0.64 per cent) and consumer discretionary (0.04 per cent). Oil & Gas, industrials, metal, IT, teck, services and utilities were among the laggards.

Despite a negative opening amidst weak global cues, the domestic market exhibited some recovery from last week’s steep fall. The market is currently attempting to gain stability between potential rate cuts and recession fears in the US, said Vinod Nair, head (research), Geojit Financial Services.