Rally In Global Stocks Help Sensex Rebound From Worst Drop In 11 Months
A financial trader sits in front of a bank of desktop computer monitors as he speaks on a fixed line telephone at a stock exchange. (Photographer: Martin Leissl/Bloomberg)

Rally In Global Stocks Help Sensex Rebound From Worst Drop In 11 Months

Latest First
  • Oldest First

Closing Bell: Rally In Global Stocks Help Sensex Rebound From Worst Drop In 11 Months

Indian equity benchmark—S&P BSE Sensex rebounded from its worst fall in 11 months after a rally in its global stocks after on hopes for a return to calm in Hong Kong.

The 31-share index closed 0.44 percent higher at 36,724.24.

The NSE Nifty 50 ended 0.43 percent higher at 10,844.65. The broader markets represented by the NSE Nifty 500 Index ended 0.35 percent higher.

Elsewhere, shares in Hong Kong surged the most since 2011, buoying markets across Asia, after reports that the city’s chief executive will withdraw a contentious extradition bill that sparked mass protests. (Get your daily fix of global markets here.)

Indian markets will witness a turnaround only after foreign portfolio investors turn substantial buyers, according to Dimensions Corporate Finance Services’ Managing Director Ajay Srivastava.

“The markets will not witness a turnaround by any upcoming government policies. Besides, domestic investors are already overinvested,” Srivastava told BloombergQuint in an interaction. “The investors need to wait for ‘buying trigger’ by the overseas investors. That will give confidence to re-balance portfolio,” he added.

Srivastava suggested investors to have a large-cap stock in the sectors they are interested and was cautious of mid- and small-cap stocks.

“Mid and small caps are not looking good fundamentally and economically. Investors need to stick to large caps as they are the only ones which will grow,” he said.

The market breadth was tilted in favour of buyers. About 914 stocks advanced and 845 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Metal Index’s 1.6 percent advance. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 1.12 percent.

Rally In Global Stocks Help Sensex Rebound From Worst Drop In 11 Months

Fab Four Stocks Of The Day

Lupin

  • Stock rose as much as 1.3 percent to Rs 744.80.
  • Company partners with Boehringer for new drug discovery.
  • Potential milestones of more than $700 million.

BEML

  • Stock rose as much as 5.4 percent to Rs 807.
  • Seeks nod for stake sale in unit Vignyan Inds (into steel casting foundry business)

Vascon Engineers

  • Stock rose as much as 19.8 percent to Rs 12.40.
  • Company won Rs 465 crore worth constructions orders.

Dr. Lal Pathlabs

  • Stock rose as much as 7.6 percent to Rs 1,273.90.
  • Stock hits fresh 52-week high.

FPI Flows To Remain Under Pressure Despite Surcharge Rollback, India Ratings Says

The foreign portfolio investments will continue to remain under the pressure over the near-to-medium term despite the rollback of higher surcharge and the benign global monetary policy stance, according to India Ratings and Research.

“Notwithstanding the periodic reversals in FPI flows that lead to net inflows, the headwinds to global FPI flows are arising from unstable global monetary policy conditions and burgeoning geopolitical tensions, and hence, are likely to persist over the near-to-medium term,” the rating agency said in a statement.

“Besides, tepid FPI flows could put pressure on the domestic yield curve over the medium term, especially on account of large central and state government borrowings in the second half of the year,” it added.

FPI Flow To Guide Road Ahead For Markets, Ajay Srivastava Says

The markets will witness a turnaround only after foreign portfolio investors turn substantial buyers, according to Dimensions Corporate Finance Services’ Managing Director Ajay Srivastava.

“The markets will not witness a turnaround by any upcoming government policies. Besides, domestic investors are already overinvested,” Srivastava told BloombergQuint in an interaction. “The investors need to wait for ‘buying trigger’ by the overseas investors. That will give confidence to rebalance portfolio,” he added.

Srivastava suggested investors to have a large-cap stock in the sectors they are interested and was cautious of mid- and small-cap stocks.

“Mid and small caps are not looking good fundamentally and economically. Investors need to stick to large caps as they are the only ones which will grow,” he said.

Market Check: Sensex, Nifty Hold Gains

Indian equity benchmarks continued to trade higher in the past hour.

The S&P BSE Sensex rose 0.34 percent to 36,686 as of 2 p.m. and the NSE Nifty 50 rose 0.29 percent to 10,829. The broader markets represented by the NSE Nifty 500 Index rose 0.15 percent.

The market breadth, however, was tilted in favour of sellers. About 866 stocks declined and 849 shares advanced on National Stock Exchange.

Rally In Global Stocks Help Sensex Rebound From Worst Drop In 11 Months

Money Market Update: Rupee At Day’s High

The Indian rupee extended gains to trade at day’s high against the U.S dollar. The home currency appreciated as much as 0.6 percent to strengthen past 72 against the greenback.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.