Sensex, Nifty Snap Three-day Losing Streak

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Sensex, Nifty Snap Three-day Losing Streak
Aparajita Gupta - 27 December 2019

New Delhi, December 27: Positive cues from US-China trade deal front on Friday helped the Indian equity market to snap the three-day long losing streak and boosted the sentiments of the investors.

The 30-scrip BSE Sensex, which opened at 41,297.08 points, ended the day’s trade at 41,575.14 points, higher 411.38 points or 1 per cent from the previous day's close at 41,163.76 points.

The Sensex touched a high of 41,611.27 points and a low of 41,264.92 points in the trade so far.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day’s trade at 119.25 points or 0.98 per cent higher at 12,245.80 points.

“Global markets continued to stay positive in the current week on the back of progress on the first phase of trade deal between the US and China. However, the Sensex closed marginally lower on profit booking and absence of any positive data-point or government announcements despite strong overseas fund flows,” said Sanjeev Zarbade, VP PCG Research, Kotak Securities.

“Sun Pharma, Reliance Industries and ITC were the top losers in the BSE-30 Index, while Hero Motocorp, Tata Steel and Titan were the top gainers. On the political front, the ruling party lost another state elections in Jharkhand. FPIs bought equities worth $758 million over the past five trading sessions while DIIs sold $610 million worth of equities in the same period. Crude prices have started to firm up and are now trading at $68 per barrel. Given the current sluggish economic growth, if the crude prices continue to rise, then it may weigh down on the market sentiment,” he added.

The sectors which were heavy gainers on Friday in BSE Sensex were energy, finance, telecom, banking, capital goods and realty.

“The market closed substantially higher from its lows of the previous day. On Thursday, the market was vertically down and today we saw sustained buying throughout the day, which lead to a vertical rally. On weekly basis, the market erased most of its losses and closed down by 20 points,” said Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities.

“Today's rally was backed by PSU stocks and corporate facing banks. India’s 10 year bond yield fell to 6.51 per cent from 6.60 per cent that fuelled a rally in financials, as well as, rate sensitive stocks. However, till the market doesn't cross the 12300 level, we should be cautious in adding long positions between 12270/12300 levels, as profit booking was witnessed between these levels in the previous upmove,” he added.

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