Sensex gets into Christmas mood, ends 260 pts higher

Domestic equity markets swung back into action on Wednesday after retreating more than 140 points a day before, as a US-led recovery in overnight trades provided a perfect platform for local traders to mount bullish bets ahead of the Christmas-led weekend. [caption id=“attachment_2557286” align=“alignleft” width=“380”]  Reuters[/caption] With most of the foreign investors already out of the markets ahead of year-end holidays, local mutual funds are playing the role of Santa Claus for domestic equities, buying shares to the tune of Rs 5,023 crore in the current month so far, while taking exposure of Rs 301 crore in last two sessions. On the contrary, overseas investors sold domestic shares worth Rs 2,476 crore during the month, with most of the redemptions coming in during the initial period of the month and in the run-up to the US Fed rate’s decision-making. “Generally FIIs have been sellers, their absence has given the market reason to be steady to high,” Reuters reported quoting Deven Choksey, managing director at KR Choksey Securities. “Only few stocks are giving the market some kind of rally or thrust, but fundamentals have not changed,” said Choksey. Ending at their highest level in nearly three weeks, the 30-share BSE S&P Sensex wrapped up the session at 25,850.30, up 259.65 points, or 1 percent from previous close. Intra-day the index rose 284 points to touch a high of 25,875.27. The broader 50-stock CNX Nifty closed the day at 7,865.95, up 79.85 points, or 1 percent. Market breadth ended positive with 1,526 stocks advancing against 1,145 declines on BSE. Overnight, key US gauges rose 1 percent, but Asia endex mixed with China’s Hang Seng risng nearly 1 percent even as Nikkei and Shanghai Composite ended a tad lower. However, major European gauges rallied sharply, rising over 1 percent in mid-day trades, as oil prices coming off their 11-year lows and positive US market futures aided sentiment. Lending support to the markets, several Sensex constituents such as Gail surged 5.8 percent to Rs 358.25, BHEL rose 3.6 percent to Rs 172.10, Sun Pharma moved up 3.5 percent to Rs 791.05, Bharti Airtel gained 2.7 percent to Rs 332 and Tata Steel was up 2.5 percent at Rs 263.70. Other gainers such as ONGC, Reliance Industries, NTPC, Infosys, Axis Bank, Hindustan Unilever, L&T and Lupin ende dover 1-2 percent higher.