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    Sensex snaps 2-day losing run, jumps 312 pts; Nifty near 11,800

    Synopsis

    Positive news from IMD on advancement of southwest monsoon helped the market.

    Bse-stock-rise--bccl-1200
    NEW DELHI: Snapping a two-day losing run, the domestic stock market on Tuesday made a smart rebound on recovery in metal majors amid positive global cues. Positive news from IMD on advancement of southwest monsoon and some stability in crude oil prices also helped the market.

    Sensex ended on a strong footing, up 311.98 points or 0.80 per cent at 39,434.94. Its NSE counterpart Nifty rose 96.80 points or 0.83 per cent at 11,796.45

    Market at a glance
    In the Sensex pack, Reliance Industries was the best performer, gaining 2.58 per cent after the company entered into agreements with offshore lenders for availing long-term loans aggregating $1.85 billion, primarily for meeting a part of its planned capital expenditure.

    Other gainers comprised of Axis Bank, Tata Steel, NTPC, Powergrid and HDFC, rising up to 3 per cent.

    Yes Bank was the worst index performers, shedding as much as 1.70 per cent amid a fire breaking out at the Dasuya branch of Yes Bank, situated in front of the railway station on the GT Road.

    Asian Paints, IndusInd Bank, Tech Mahindra and HUL and TCS were other index losers declining up to 1 per cent.

    The BSE Midcap and BSE Smallcap indices advanced 0.66 per cent and 0.32 per cent, respectively.

    On the sectoral front barring capital goods all other sectors ended in the green.

    Metal was the top gainer rising 1.82 per cent led by metal heavyweights such as Tata steel as firm is setting up India's first scrap recycling plant, which will be based in Rohtak, Haryana. The move will give the company an early lead among peers.

    Factors that worked in favour of the market:

    Value Buying in bank stocks
    Banking heavyweights emerged as major index contributors. Strong value buying in ICICI Bank, HDFC Bank and Axis Bank kept the markets breezy after the FM told the Parliament that bad loan recoveries at Rs 45,593 crore surpassed write-offs in 2018-19. The write-offs stood at Rs 36,377 crore during the year, the minister said.

    Hopes of trade resolution
    US President Donald Trump and Chinese leader Xi Jinping have agreed to meet at the G20 summit in Japan next week, raising hopes for a truce in the bruising trade war between the world's top two economies.

    Expert Take
    "We maintain our cautious stance. The near-term movement is likely to be driven by progress in monsoon as well as global developments. The G20 summit will be closely monitored, as it is likely to focus on efforts to settle the international crisis and give some indication on progress on US-China trade talks. Further, the crude oil price and currency movement will also be on the market radar"
    - Jayant Manglik, President - Retail Distribution, Religare Broking

    "Front line indices had a smart pull back, after uninspiring move over the previous fortnight. Markets have been building up hopes from Union budget for the revival of the economy (which has hit 5-year low GDP growth). Further, a torrent of tweets from Trump on China, have been kept the market guessing about his foreign policy and trade war stance in the upcoming G20 meet. Further, his tweets on Iran are crucial for oil price movement which remains critical for Indian macro stability"
    - Jagannadham Thunuguntla, Sr. VP and Head of Research (Wealth), Centrum Broking




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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

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