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  Business   Market  06 Aug 2019  Sensex rebounds 277 points; bank, auto stocks rally

Sensex rebounds 277 points; bank, auto stocks rally

Published : Aug 6, 2019, 4:18 pm IST
Updated : Aug 6, 2019, 6:09 pm IST

Nifty too recovered from its five-month low to settle around 86 points higher ahead of the RBI's policy outcome.

Top gainers in the Sensex pack included Yes Bank, TechM, Bajaj Finance, Bharti Airtel, Maruti, Asian Paints and Hero MotoCorp -- rising up to 5.30 per cent.
 Top gainers in the Sensex pack included Yes Bank, TechM, Bajaj Finance, Bharti Airtel, Maruti, Asian Paints and Hero MotoCorp -- rising up to 5.30 per cent.

Mumbai: Equity benchmarks Sensex and Nifty rebounded on Tuesday, a day after plunging to five-month lows as investors lapped up bank and auto sector stocks with hopes that the RBI will cut repo rate to lift sagging consumer sentiment.

After swinging over 705 points during the day, the 30-share BSE index closed at 36,976.85, rising 277.01 points or 0.75 per cent. The gauge hit a high of 37,241.77 and a low of 36,536.59.

The broader 50-share Nifty ended 85.65 points or 0.79 per cent higher at 10,948.25.

The RBI Monetary Policy Committee (MPC) is scheduled to announce its third bi-monthly policy of the ongoing fiscal on Wednesday.

Besides, the market also got a boost from a hint that the government might soften its stand on higher super-rich surcharge on foreign portfolio investment.

The Sensex chart was led by Yes bank, with its shares climbing 5.30 per cent. Other major gainers were TechM, Bajaj Finance, Bharti Airtel, Maruti, Asian Paints and Hero MotoCorp -- rising up to 3.97 per cent.

On the other hand, PowerGrid, TCS, RIL, Tata Motors, Bajaj Auto, Vedanta, Infosys and ITC fell as much as 1.52 per cent.

Sectorally, BSE capital goods, telecom, realty, industrials, basic materials, finance, bankex and metal indices rose up to 2.12 per cent.

In contrast, BSE energy, IT, teck and oil and gas indices fell up to 0.68 per cent.

Broader BSE midcap and smallcap indices followed benchmarks, rallying up to 1.72 per cent.

According to analysts, markets gained strength on the back of buying by investors ahead of key RBI policy announcement on Wednesday.

The market breadth was tilted in favour of buyers as 1,637 stocks advanced and 809 declined on the BSE.

Market recouped Monday's losses aided by broad-based buying across sectors supported by the finance minister's decision to have a discussion over foreign portfolio investment issue amid continued outflow of liquidity, said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

Global cues were positive due to China's step to prevent further slid in Yuan... While hope for a 25 basis point rate cut in the RBI meet tomorrow provided some support to the trend," he said.

The industry is also expecting the MPC to take steps to improve liquidity situation and ensure transmission of rate cuts to borrowers by the banks.

Meanwhile, positive sentiment ahead of finance minister's meetings with industry leaders amid anticipation of steps to improve the state of the economy quickly too buoyed market mood here, he added.

Finance Minister Nirmala Sitharaman on Monday said she will meet representatives of various sectors and "fairly quickly" come out with steps to help them.

"Essential idea behind these meetings is to hear from them and fairly quickly after that come up with something which will help those sectors which are giving their views to us," she told reporters.

Meanwhile, the worrying trend over foreign investment outflows continued on Tuesday with overseas investors taking Rs 2,107.93 crore out of Indian equities.

However, domestic institutional investors put in Rs 2,289.05 crore on a net basis into domestic stock market.

The Indian rupee on Tuesday fell by another 8 paise to settle at 70.81 against the US dollar.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi ended in the red. While, equities in Europe were trading on a positive note in their respective early sessions.

The global oil benchmark Brent crude futures were trading 0.48 per cent higher at 60.10 per barrel.

Tags: bse, nse, sensex, nifty, national stock exchange, bombay stock exchange
Location: India, Maharashtra, Mumbai (Bombay)