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Post Session: Bulls move in to halt 6-day bear run, Sensex ends 216 pts higher Analysis for Dec 10, 2015

By Religare

The Indian benchmark indices ended higher for the first day in the last seven trading sessions, helped by a value buying in blue-chip stocks coupled with covering-up of short positions by speculators. Market breadth remained fairly positive as investors bought into beaten down stocks, bucking the muted trend seen in Asian markets.

Snapping six-day losing streak, the 30-share BSE SENSEX closed at 25252.32, up by 216.27 points or by 0.86 per cent, and the NSE Nifty ended 70.8 points higher at 7683.3.


However, the undertone remained cautious amidst rising concerns surrounding the GST bill which could face a delay in implementation, dimming the outlook for Asia"s third biggest economy, limiting risk taking appetite.

In the bullish trade, the BSE Sensex touched intraday high of 25289.58 and intraday low of 25034.14, while the NSE Nifty touched day"s high and low of 7691.95 and 7610, respectively.

In line with the benchmark indices, the broader market also ended higher, with the BSE MIDCAP closing 95.17 points or by 0.9 per cent higher at 10701.97, while the BSE SMLCAP settled at 11304.26, up by 138.14 points or by 1.24 per cent.

There are fears that GST, seen as a breakthrough fiscal reform that could boost the country"s annual GDP by as much as 2 per cent, may fail to get the green light during the current Parliament session, putting its implementation from the set date of April 1, 2016, in limbo.

Further, uncertainty on the global front amidst an ongoing commodity rout, signs of a worsening slowdown in China, coupled with caution ahead of the US Federal Reserve"s policy meet next week in which an interest rate hike is widely expected, also weighed on Dalal Street. Traders may also resort to caution ahead of the October industrial output data set for release after-market-hours tomorrow.

On the sectoral front, all the thirteen indices ended in positive terrain, with oil&gas and metal stocks emerged as top gainers, adding 1.89 per cent and 1.65 per cent, respectively. Metal stocks were among top laggards in the last six trading session as drop in China"s exports in November signaled a worsening outlook for the world"s second biggest economy, eroding the earnings prospects for metal companies.

Leading the rally on BSE Sensex pack were Reliance Industries Ltd. (Rs. 949.90,+3.71%), Hindalco Industries Ltd. (Rs. 75.75,+2.71%), Tata Steel Ltd. (Rs. 232.95,+2.69%), NTPC Ltd. (Rs. 133.45,+2.50%), Housing Development Finance Corporation Ltd. (Rs. 1181.10,+2.30%), among others.


Meanwhile, Mahindra & Mahindra Ltd. (Rs. 1291.05,-1.66%), Lupin Ltd. (Rs. 1736.10,-1.42%), Tata Motors Ltd. (Rs. 389.30,-1.18%), State Bank of India (Rs. 231.95,-1.02%), Bharat Heavy Electricals Ltd. (Rs. 167.55,-0.83%), were among top losers on BSE.

The Market breadth, indicating the overall strength of the market, was positive. On BSE out of total shares traded 2986, shares advanced were 1905 while 883 shares declined and 198 were unchanged.

Among the global peers, Asian stocks ended in red as tumbling oil prices continued to unsettle investor sentiment. China"s Shanghai Composite and Hang Seng closed tad lower in choppy trade. Japan"s Nikkei 225 plunged by over 1 per cent as a stronger yen curbed the lure for exporter stocks.

Story first published: Thursday, December 10, 2015, 16:24 [IST]
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