Sensex rebounds after 2-session fall, jumps 146 pts as IT, pharma lead recovery

Foreign portfolio investors (FPIs) bought shares worth a net Rs 225.84 crore Wednesday

PTI February 16, 2017 18:03:23 IST
Sensex rebounds after 2-session fall, jumps 146 pts as IT, pharma lead recovery

Mumbai: Snapping a two-session losing run, the Sensex surged 146 points Thursday to close at 28,301, powered by IT stocks, after bellwether TCS said it will consider a share buyback proposal next week.

Value-buying in pharma and other counters and upbeat macroeconomic data also supported the rebound.

Sentiment got a lift after the country's largest software company Tata Consultancy Services (TCS) said its board will meet on February 20 to consider a proposal for buyback of equity shares of the company.

The 30-share Sensex, after opening on a strong note at 28,223.85, succumbed to profit-booking and slipped to hit the day's low of 28,146.19, before bouncing back to close higher by 145.71 points, or 0.52 percent at 28,301.27. It touched an intra-day high of 28,327.84.

The gauge had lost 196.06 points in the last two days.

The 50-share NSE Nifty gained 53.30 points or 0.61 percent to 8,778. Intra-day, it shuttled between 8,783.95 and 8,719.60.

Sensex rebounds after 2session fall jumps 146 pts as IT pharma lead recovery

Reuters

"Positive macro data gave support to buoyant market sentiment. Exports rose 4.32 percent to $22.11 billion in January and imports rose 10.7 percent to $31.95 billion," said Karthikraj Lakshmanan, Senior Fund Manager Equities, BNP Paribas Mutual Fund.

In the IT space, shares of TCS rallied 1.29 percent to Rs 2,446.90, while Infosys soared 3.01 percent to Rs 1,011.90 and Wipro rose 1.36 percent to Rs 481.05.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 225.84 crore Wednesday, as per provisional data released by the stock exchanges.

Shares of SBI and its associates soared after the Cabinet approved their merger, a step aimed at strengthening the sector through consolidation of public banks.

Seeking to create a global-sized bank, the Cabinet yesterday gave the go-ahead to the merger plan of SBI and its five associates.

The scrip of State Bank of Mysore soared 4.51 percent, State Bank of Bikaner and Jaipur gained 3.48 percent, State Bank of Travancore jumped 3.85 percent while SBI gained 0.65 percent on the BSE.

Sun Pharma, which had been under pressure in the past few sessions on disappointing earnings, emerged as the top gainer among Sensex constituents by recovering 4.31 percent to Rs 649.30 on value-buying.

A mixed trend at other Asian bourses, tracking another record closing at the US markets yesterday after President Donald Trump reiterated his promise to unveil a tax reform plan soon, too influenced sentiment, brokers said.

Hong Kong's Hang Seng rose 0.47 percent and Shanghai Composite Index gained 0.52 percent, while Japan's Nikkei fell 0.47 percent.

European markets, however, were subdued in early deals as London's FTSE fell 0.44 percent, Paris CAC 40 shed 0.29 percent and Frankfurt was down 0.22 percent.

The BSE Mid-Cap index provisionally rose 1.25 percent, while the Small-Cap index gained 1.35 percent.

Of the 30-share Sensex pack, 19 scrips ended higher while 11 others finished lower.

Major gainers included Infosys (3.01 percent), Maruti (2.84 percent), Tata Motors (2.14 percent), Tata Steel (2.11 percent), Cipla (1.75 percent), Gail (1.69 percent), RIL (1.34 percent), TCS (1.29 percent), Wipro (1.26 percent) and (M&M 1.15 percent).

However, index heavyweight ITC declined 2.45 percent, followed by Asian Paints (1.18 percent), Adani Ports (0.75 percent), L&T (0.66 percent), ICICI Bank (0.66 percent), Coal India (0.56 percent) and HDFC (0.35 percent).

Among BSE sectoral indices, healthcare rose 2.46 percent, realty 2.14 percent, IT 2.04 percent, metal 2.00 percent, consumer durables 1.66 percent, teck 1.64 percent and auto 1.61 percent.

FMCG was the sole loser, falling 0.92 percent.

Market breadth turned positive as 1,811 shares ended higher, 987 closed lower while 180 ruled steady.

Total turnover on BSE amounted to Rs 2,618.23 crore, lower than Rs 3,412.57 crore registered during the previous trading session.

Updated Date:

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