Sensex ends up 54 pts, but extends losing streak for third straight week

Equity markets concluded the last trading session of the week on a positive note, albeit with modest gains in a session marked by volatility, as a firm European markets opening coupled with recovery in local banking shares helped key benchmark indices sail through at the end. [caption id=“attachment_2293160” align=“alignleft” width=“380”]  Reuters[/caption] On Friday, 30-share S&P BSE Sensex ended at 26,425.30, up 54.32 points, or 0.2 percent from previous close. The index witnessed sharp gyration through the session, a swing of 182 points in intra-day trade. The broader 50-share CNX Nifty closed at 7,982.90, up 17.55 points, or 0.2 percent over previous close. However, the losing streak for the markets continued for the third straight week, with Sensex dropping 1,500 points or 5.5 percent during the period. In the current week, the Sensex shed 343 points or 1.3 percent over the preceding week. Despite the slight recovery in today’s trades, market breadth ended weak with 1,497 stocks declining against 1,126 advances on BSE. According to dealers, the trend suggests that markets may continue to remain choppy with a negative bias in the coming week. Banking shares logged gains after exhibiting weakness in early trades with BSE Bankex ending 1.1 percent higher at 20,077.07. On demands of public sector banks for greater capital infusion, Finance Minister Arun Jaitley in his meeting with bankers today said there is a “merit” in their case and the government will seriously look into it. The final decision to this effect will be taken by the cabinet, he said. Government has earmarked Rs 7,900 crore in the 2015-16 Budget towards capital infusion in public banks. The RBI had said that the amount is inadequate and needed to be enhanced, a PTI report said. Among the gainers in the banking space, ICICI Bank gained 2.5 percent to Rs 295.85, Kotak Bank rose 2 percent to Rs 1,306.30, HDFC Bank scaled up 0.8 percent to Rs 1,008.20, Bank of India inched up 0.2 percent at Rs 173.45 and SBI was up a tad at Rs 253.95. Index heavyweight Reliance Industries ended 1.4 percent higher at Rs 889.15. Mukesh Ambani, chairman of Reliance Industries Limited, at the company’s 41st AGM today said the commercial operations of its much-awaited 4G telecom services will start by December, and plans to complete projects worth over Rs 2 lakh crore in the core oil and petrochemical businesses over the next 12-18 months. In the Sensex pack, two-wheeler major Bajaj Auto jumped 3.5 percent to Rs 2,285.55, Tata Power gained 3.4 percent to Rs 72.60 and BHEL was up 2.1 percent at Rs 248.25. On the other hand, shares of frontline IT companies incurred losses with TCS ending 2.3 percent lower at Rs 2,512.05 and Infosys falling 1.3 percent at Rs 1,976.65. As per the report, the US government has opened an investigation against TCS and Infosys for possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison.