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Sensex recovers 16 pts; posts biggest weekly loss in 6 months

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Mumbai: The Sensex today gained for the first time in six days to edge up about 16 points on value-buying in bluechips, although the benchmark ended up posting its worst weekly show in six months.

The BSE 30-share barometer resumed better and moved in a range of nearly 125 points before closing at 20,513.85, a rise or 15.60 points or 0.08 per cent.

This was the first rise in six sessions after a 875.41-point tumble from the record closing high of 21,373.66 on January 23.
In the 30-share Sensex, 18 stocks gained while 12 scrips declined. Axis Bank, Bharti Airtel, GAIL India, ICICI Bank, Mahindra and Mahindra, Reliance Industries, State Bank of India, TCS, Tata Steel and Wipro led the gainers.


HDFC, Tata Motors, HDFC Bank, Sun Pharma and Hero Motocorp were among the Sensex laggards.
Buying activity was confined to recently beaten down sectors of realty and metal, while a weak global trend capped the gains to some extent, traders said.

Smallcaps and midcaps attracted heavy buying, they added.

Overall, 11 of the BSE sectoral indices ended in the green while the auto sector slipped.

On a weekly basis, the Sensex lost 619.71 points, or 2.93 per cent. This the worst show since the 1,138.11-point plunge in the week ended August 2, 2013.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said: “Markets traded from flat to range bound with a slight positive bias and finally ended the day on a positive note. Global indices were mixed.”

The NSE’s Nifty moved up 15.80 points, or 0.26 per cent, to end at 6,089.50.

“Next week on Monday the HSBC manufacturing PMI will be announced. This could make the market volatile because we would see movements in sectors such as engineering, metals, autos. Movement in USD-INR will now take centre stage,” said Milan Bavishi, Head Research, Inventure Growth and Securities.

In January 2014, the BSE Sensex slid 656.83 points — the worst performance since the 725.98-point drop in August 2013.

Sharing his outlook on Nifty, Rakesh Goyal, Senior Vice President, Bonanza Portfolio said: “In coming week, 6050 shall be crucial deciding level in near term, and index is likely to witness further selling below this level. Below 6050, likely target is 5970-5900, while above 6100, target is 6150-6200.”

Globally, US stocks rebounded yesterday as investors welcomed data showing a robust pace of growth in the world’s largest economy in the final quarter of last year, while upbeat earnings from Facebook Inc boosted the tech sector.

In Asia today, Japan’s Nikkei 225 index eased by 0.62 per cent. China’s markets are closed till February 7 for the Lunar New Year holiday, while Hong Kong bourse is shut until February 4. Other bourses shut for holiday include the ones in Taiwan, South Korea, Indonesia, Malaysia and Vietnam.

European markets were trading lower as indices in France, Germany and UK were down in 0.93-1.56 per cent range.

Coming back to the local market, major Sensex gainers were Tata Steel (2.77 per cent), Tata Power (2.71 per cent), Gail India (2.62 per cent), M&M (2.43 per cent), Bharti Airtel (2.19 per cent), ICICI Bank (1.41 per cent), Hindalco (1.34 per cent), ONGC (1.14 per cent), Axis Bank (0.86 per cent) and TCS (0.83 per cent).

Tata Motors with a drop of 3.14 per cent, followed by HDFC (2.50 per cent), Hero Motocorp (1.47 per cent), NTPC (1.33 per cent), Bajaj Auto (0.92 per cent) and Sun Pharma (0.87 per cent) were among the laggards.

Among the S&P BSE sectoral indices, Realty rose by 1.63 per cent, Metal 1.27 per cent, Oil&Gas 1.18 per cent, Teck 1.04 per cent, Capital Goods 0.84 per cent, Bankex 0.81 per cent and IT 0.72 per cent. Auto index eased 0.43 per cent.

The market breadth turned positive as 1,525 stocks ended in green, 1,059 finished in red while 147 ruled steady.

Total turnover rose further to Rs 2,685.58 crore from Rs 1,974.35 crore yesterday.

Foreign Institutional Investors (FIIs) sold shares worth Rs 430.20 crore yesterday, as per provisional data with stock exchanges.