Sensex snaps 4-day losing run, Nifty at 11,692; Jet Airways tanks 41%

NEW DELHI: The BSE benchmark Sensex rebounded in Tuesday's session following gains in financials and IT stocks. The 30-pack index snapped four-day losing streak to end 86 points or 0.22 per cent higher at 39,046.

Meanwhile, its NSE counterpart Nifty ended the session tad below the 11,700 mark. The flagship index shut shop at 11,692, up 19 points or 0.17 per cent.

The market remained volatile as investors adopted a cautious stance ahead of the US Federal Reserve's meeting that begins later today. Softening crude oil prices and rising rupee turned out to be positive triggers, but concerns regarding economic growth remained an overhang.

The advance-decline ratio stood at 3:5, indicating underlying bearishness in the market.

Market at a glance:

In the Sensex pack, Vedanta followed by Coal India, Power Grid, ICICI Bank, HCL Tech and Bajaj Finance followed the gainer pack, rising between 2.47 per cent and 1.43 per cent.

YES Bank, on the other hand, was the worst performing stock. The scrip ended 5.94 per cent lower. Maruti, Asian Paints, Sun Pharma and HDFC were among other losers.

In the sectoral space, oil & gas, IT and teck were the leaders whereas healthcare and auto were the worst laggards.

The BSE Midcap index rose marginally by 0.08 per cent while the BSE Smallcap index ended 0.42 per cent lower.

Shares of Jet Airways nosedived 40.74 per cent to end at Rs 40.45 after lenders to the airline decided to take it to bankruptcy courts.

Factors

Fed meet
The Fed is expected to leave interest rates unchanged in its policy meeting, even as President Donald Trump pressed fresh demands for a rate cut. However, there are hopes that the FOMC would adopt a more dovish stance.

Oil softens
Oil prices fell for a second day on signs that global economic growth is being hit by the US-China trade war, though losses were capped by Middle East tensions after last week's tanker attacks. Brent crude futures were trading 42 cents down at $60.52 a barrel. West Texas Intermediate crude futures lost 26 cents to $51.67.

Rupee gains
The rupee snapped its three-day losing streak after the domestic currency recovered close to 20 paise against the greenback amid selling in American currency by banks and exporters and softening crude prices.

Expert Take
Market ended positive supported by easing in oil prices due to concern over global growth, trade wars and uncertainties in upcoming Opec meeting. There was a hope that the weakening domestic market will be supported by fiscal and monetary measures. This hope is being tested today given continuous weak economic and monsoon data. Market will be careful during the ongoing Fed meeting which is expected to provide a dovish
Vinod Nair, Head of Research, Geojit Financial Services