Markets Rebound Led by Heavyweight Stocks & Positive Global Cues

It was higher by 76.55 points or 0.94 percent at 8,184.45 points.

The benchmark BSE Sensex fell over 133 points in early trade today due to selling in IT stocks after TCS’ second quarter earnings failed to impress investors.

The 30-share index barometer jumped 225 points in the beginning, but headed into the red zone soon after Infosys results and settled 175.40 points down, or 0.65 per cent, at 26,904.11.

Investor-anxiety over the ongoing quarterly results kept the Indian equity markets subdued on Monday. However, positive global cues kept losses in check. Stock market may extend gain in near term and hit 8400 on the Nifty, but after that major profit booking may be seen, feel experts. Nikkei rose 1 percent, Shanghai gained 1.6 percent and Hang Seng was up 0.8 percent.

Mutual fund managers continued to maintain bullish stance on software companies as they raised their total allocation in the sector to a fresh all time-high of over Rs43,000 crore in September on depreciation in rupee. It closed the day’s trade up 22 paise at 64.82 (64.8175) to a U.S. dollar from its previous close at 65.04 to a greenback. Nitasha Shankar, vice president, research with YES Securities, told IANS: “Broader markets are trading on a weak note”. The gains were fueled by metal producers, energy companies and power utilities as global central banks show no desire to pull back on stimulus anytime soon. Meanwhile, China’s auto market grew moderately in September as it reversed a three-month sales drop on annual basis – a positive sign that it could regain momentum in the fourth quarter following a cut in vehicle purchase tax effective from October 1. “However, volumes continue to remain thin suggesting lack of participation”, Shankar said. However, BSE Consumer Durables and Healthcare indices gained between 0.3-1.5%. Nifty opened 14.15 points up at 8193.65.

Earlier, the index had opened in the green on optimistic buying by participants ahead of key macroeconomic data IIP and inflation, to be released later in the day, brokers said.