Sensex recovers 172 pts on global cues

STOCK MARKETS ended higher on Tuesday as losses in the previous session were seen as overdone, with the Sensex recovering 172 points as Asian markets recovered after some of the anxiety about US President Donald Trump’s ability to push his agenda subsided. The NSE Nifty closed above the 9,100-mark, with banking and auto shares leading the rally on the back of upbeat global pointers.

The 30-share Sensex scaled the session’s high of 29,442.18 before closing up 172.37 points, or 0.59 per cent, at 29,409.52. It had lost 184.25 points in the previous session on weak global cues. The 50-share NSE Nifty reclaimed the key 9,100-mark to hit a high of 9,110.40 before ending at 9,100.80, up by 55.60 points, or 0.61 per cent.

Asian stocks ended up and Europe shares moved in higher circuit,too.“thedomesticmarket bounced back by recouping yesterday’s losses on positive global cues though investors will keep a close watch on US fiscal spending and tax cut plans in future. Indian banking stocks were among the front-runners in anticipation of a new NPA resolution policy,” said Vinod Nair, Head of Research, Geojit Financial Services.

Axis Bank came on the top, rallying 3.23 per cent, after the private bank informed the bourses that it has raised senior notes in the international market. Bharti Infratel climbed 1.98 per cent after consortium of KKR and Canada Pension Plan Investment Board picked up a 10.3 per cent stake in the company. The banking index gained the most followed by auto, consumer durables, power and healthcare.

Analystssaidinflowsfromforeignportfolioinvestors(fpis)continued unabated. FPIS purchased shares worth Rs 577.88 crore on Monday, as per provisional data. “Value buying helped indices to march ahead, with banks continuing to lead ahead of RBI’S monetary policy statement next week. Rollovers in Nifty were also seen at hectic pace and was seen above 6 months’ average as F&O derivative expiry approached. Global cues will now gain prominence with Brexit being triggered today, and with next week thick with US economic data,” said an analyst.

According to Jayant Manglik, President, Retail Distribution, Religare Securities, Nifty reclaimed 9100, thanks to the rebound in Asian counterparts and favourable local cues. “Initially, it surged on the hopes of timely implementation of goods and services tax (GST) which further strengthened with recovery in global indices. However, it remained range bound thereafter while participants were busy in rollover and unwinding of their derivatives positions. We expect volatility to increase in the next two sessions due to scheduled derivatives expiry. Even liquid stocks are witnessing erratic intraday swings, which is normal during consolidation phase,” Manglik said.