Sen­sex breaks nine-ses­sion los­ing streak

Hindustan Times (Patiala) - - Business - Agen­cies feed­[email protected] n

In­dian stocks ad­vanced, snap­ping their long­est stretch of losses since Fe­bru­ary, as some in­vestors felt nine days of de­clines to be ex­ces­sive.

The S&P BSE Sen­sex climbed 0.6%, or 227.71 points, to 37,318.53 in Mum­bai af­ter fall­ing as much as 0.4% ear­lier in the ses­sion. That avoided the long­est ever los­ing streak for the bench­mark gauge. The NSE Nifty 50 In­dex gained 0.7%, or 73.85 points, to end the ses­sion at 11,222.05.

Stocks have been weighed down in re­cent days as in­vestors weighed their po­si­tions ahead of next week’s na­tional bal­lot re­sults and fret­ted over the es­ca­lat­ing US-China trade dis­pute.

The sev­enth and last phase of vot­ing for In­dia’s marathon elec­tions takes place on May 19, with vote counting and re­sults sched­uled for re­lease on May 23. On the earn­ings front, 17 of the 27 Nifty com­pa­nies that have re­ported so far have ei­ther met or ex­ceeded es­ti­mates.

“The mar­ket is in an over­sold ter­ri­tory but it will be too early to say that we are out of the woods af­ter this gain,” said Ji­ten­dra Panda, man­ag­ing direc­tor at Peer­less Se­cu­ri­ties Ltd. in Kolkata. “Foreign in­vestors have been sell­ing and we will have to see how it pans out over the next cou­ple of days.” “There was a build-up of po­si­tions in the run-up to the elec­tions and it’s nat­u­ral that some in­vestors may wish to book prof­its as the event is close,” said Joseph Thomas, head of re­search at Emkay Wealth Man­age­ment. “Amid this, the US-China trade dis­pute is fur­ther adding to the neg­a­tive en­vi­ron­ment.”

All but two of 19 sec­tor in­dexes com­piled by BSE Ltd ad­vanced, led by a gauge of tele­com com­pa­nies. Reliance In­dus­tries Ltd con­trib­uted the most to the in­dex ad­vance, in­creas­ing 2.3%. Sun Pharma had the largest gain, ris­ing 5.4%. Tata Con­sul­tancy Ser­vices Ltd was the big­gest drag on the in­dex and had the big­gest drop, de­clin­ing 1.7%.

Jet Air­ways slumped 7.3% af­ter its chief fi­nan­cial of­fi­cer re­signed.

In­dia’s re­tail in­fla­tion in April was 2.92% and it re­mained be­low the cen­tral bank’s tar­get for the ninth month, rais­ing hopes of a RBI rate cut and help­ing in­vestor sen­ti­ment to re­vive.

In the last nine ses­sions, the Sen­sex had lost 1,940.73 points and the Nifty has given away nearly 600 points.

The Tues­day’s trade, mainly the first half of the ses­sion, was marked by in­tense volatil­ity as in­vestors ap­peared cau­tious weigh­ing a host of head­winds like con­cerns on macroe­co­nomic front, US-China trade war ten­sions and un­cer­tainty over elec­tion outcome.

MINT

The Sen­sex rose 227 points to set­tle at 37,318 on Tues­day.

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