Sensex jumps 191 points to 31,404.24, ignores weak IIP data


Business, Market

Short-covering in recently beaten down stocks by speculators parlty influenced trading sentiment.

Brokers during a trading session at BSE. (Photo: PTI).

Mumbai: The BSE Sensex recovered about 191 points in opening trade today, breaking its five-session losing streak, on value-buying by investors despite industrial production entered the negative territory in June.

Short-covering in recently beaten down stocks by speculators and a mixed trend on other Asian bourses, tracking weekend gains in the US markets, influenced trading sentiment, brokers said.

The 30-share barometer, which had lost 1,111.82 points in the previous five straight sessions, was trading higher by 190.65 points, or 0.61 per cent, to 31,404.24, with all the sectoral indices led by realty, metal and infrastructure trading in green.

On similar lines, the NSE Nifty rose 62.20 points, or 0.64 per cent, to 9,773.

Meanwhile, Industrial production (IIP) entered the negative territory in June, contracting by 0.1 per cent mainly due to decline in manufacturing and capital goods sectors.

Besides, segments like mining, power generation, infrastructure/construction goods and consumer durables recorded poor performance.

The big gainers that supported the recovery in the key indices were Adani Ports, Cipla, Tata Steel, Hero MotoCorp, Reliance Industries, M&M, Maruti Suzuki, Coal India, Power Grid, Tata Motors, ICICI Bank, Axis Bank and NTPC, rising up to 4.17 per cent.

Among other Asian markets, Hong Kong's Hang Seng was up 1.10 per cent, while Japan's Nikkei shed 0.84 per cent in early trade. China's Shanghai Composite Index was up 0.41 per cent.

The US Dow Jones Industrial Average ended 0.07 per cent higher in Friday's trade.