Sensex Rebounds by 214 pts on Value-Buying
Sensex rebounds by 214 pts on value-buying
Ending five-day losing streak, the benchmark BSE Sensex on Wednesday rebounded by over 214 points to 27,890.13 on value-buying in capital goods, pharma and banking stocks as sentiment improved after Saudi Arabia ended its military campaign in Yemen.
Sentiment were also buoyed after Finance Minister Arun Jaitley said GST bill will be passed in the current session of Parliament, brokers said.
However, retrospective taxation concerns and corporate earnings worries capped the gains in a volatile session, they added.
FIIs today met Minister of State for Finance Jayant Sinha and Revenue Secretary Shaktikanta Das on the Rs 40,000-crore tax demand by the government.
“If there is any help that can be given, we will see,” Sinha said. The government, however, refused to relent saying the remedy lies in judicial appeal.
In volatile movements, the 30-share BSE barometer gained over 151 points on value-based buying in bluechip stocks. But on reports of subdued monsoon forecast, the gauge slipped into the negative zone to touch the day’s low of 27,385.48.
A flurry of buying in the last one hour boosted the index to the day’s high of 27,947.26, before settling with a gain of 214.19 points or 0.77 per cent at 27,890.13.
On similar lines, the 50-share NSE Nifty, recaptured the crucial 8,400-mark by gaining 51.95 points or 0.62 per cent, to close at 8,429.70.
Despite, subdued monsoon forecast, shares of Hindustan Unilever topped the Sensex gainers by surging 3.59 per cent.
Shares of Sun Pharma also made a comeback today to close 1.63 per cent higher at Rs 967.15, a day after Japan’s Daiichi Sankyo sold its entire in the company for Rs 20,025 crore.
Other gainers on the Sensex included, L&T 3.29 per cent, Axis Bank 3.19 per cent, Dr Reddy’s 3.04 per cent, M&M 2.03 per cent, Tata Power 1.61 per cent and HDFC 1.60 per cent.
However, Shares of Wipro plunged over 6 per cent to Rs 544 after company’s earnings failed to enthuse investors.
Fresh foreign capital inflows into equity market also boosted the market sentiment. Foreign portfolio investors (FPIs) bought shares worth net Rs 17,488.73 crore, on Tuesday.
Sectorally, the BSE capital goods gained the most by rising 1.88 per cent, followed by healthcare 1.20 per cent, Banking index 0.78 per cent and FMCG 0.52 per cent.
Firming trend in other Asian and falling crude prices overseas after Saudi ended its military action in Yemen have positive impact, trades said.
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