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Investors shrug off blues, Sensex bounces 172 points

Mumbai: The Sensex got back on its feet as it rebounded over 172 points today to close at 29,409 and the NSE Nifty closed above the 9,100-mark, with banking and auto shares doing the job on the back of upbeat global pointers.

The rush hour continued for FII inflows, and Asian recovery came on hopes that the US President Donald Trump’s failure to push through his healthcare Bill will lead to the US government taking quicker action on tax reforms.
The 30-share Sensex scaled the session’s high of 29,442.18 before closing up 172.37 points, or 0.59 per cent, at 29,409.52. It had lost 184.25 points in the previous session on weak global cues.

The 50-share NSE Nifty reclaimed the key 9,100-mark to hit a high of 9,110.40 before ending at 9,100.80, up by 55.60 points, or 0.61 per cent. Globally, Asian stocks ended up. Europe shares moved in higher circuit, too.
“The domestic market bounced back by recouping yesterday’s losses on positive global cues though investors will keep a close watch on US fiscal spending and tax cut plans in future. Indian banking stocks were among the front-runners in anticipation of a new NPA resolution policy,” said Vinod Nair, Head of Research, Geojit Financial Services.

The big gains came from Axis Bank, Asian Paints, Tata Motors, SBI, ICICI Bank, Sun Pharma, M&M, NTPC and Power Grid, rising by up to 3.23 per cent. ONGC, Lupin, ITC Ltd, RIL, Coal India and Hero MotoCorp, however, fell. Broader markets mid-cap and small-cap indices remained firm. Axis Bank came on the top, rallying 3.23 per cent, after the private bank informed the bourses that it has raised senior notes in the international market. Telecom tower company Bharti Infratel climbed 1.98 per cent after consortium of KKR and Canada Pension Plan Investment Board picked up a 10.3 per cent stake in the company.

Dishman Pharma soared as much as 20 per cent to an all-time high of Rs 278.20 after the company’s partner Tesaro got the US Food and Drug Administration’s nod for an ovarian cancer drug. Aurobindo Pharma surged 1.40 per cent as the company received final approval from the US health regulator for injections used for treatment of skin infections. HDFC Ltd, GIC Housing, Dewan Housing and LIC Housing, which are into the housing loan segment, saw good demand and recorded gains of up to 1.97 per cent.

The banking index gained the most followed by auto, consumer durables, power and healthcare. Foreign portfolio investors (FPIs) purchased shares worth Rs 577.88 crore yesterday, as per provisional data. The market breadth turned positive as 1,448 stocks ended higher, 1,391 lower and 215 ruled steady. The total turnover on BSE hit Rs 18,978.14 crore, up from Rs 8,810.20 crore in the previous trading session.

PTI