Sensex gains 18 points

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The benchmark S&P Bombay Stock Exchange (BSE) sensex snapped eight days of losses to end up by 18 points on fresh buying after investors deemed the recent decline excessive.

The 30-share sensex resumed higher at 19,178.06 and moved between 19,306.51 and 19,141.68 before ending at 19,182.26, a rise of 18.24 points or 0.1 per cent. It lost 1,138.11 points, or 5.6 per cent, in the previous eight sessions.

The National Stock Exchange (NSE) 50-share Nifty gained 7.5 points, or 0.13 per cent, to 5,685.40. The SX40 index on the MCX-SX closed at 11428.72, up 9.99 points or 0.09 per cent.

There was fresh buying, mainly in metal, banking, IT and PSU stocks. Shares of capital goods, power, consumer durable and healthcare sectors declined.

Jindal Steel and Power led gains on the sensex, rising 7.73 per cent to Rs 201.35. Bharat Heavy Electricals Ltd was the biggest loser on the index, falling 19.08 per cent to 129.90 after the company’s first-quarter profit almost halved.

“Stocks such as Jindal Steel, Sesa Goa and JP Associates have gained over five per cent each,” said Milan Bavishi, head of research at Inventure Growth and Securities. “These stocks have created trading opportunities after the fall seen in these stocks over the last few days.”

Financial Technologies (India), battered in the previous two sessions amid problems at group entity National Spot Exchange Ltd (NSEL), staged a comeback and rose 30.88 per cent to Rs 197.95. The NSEL Sunday said it is committed to ensure proper settlement of all outstanding obligations.

FIIs invested a net Rs. 289.39 crore on Friday, as per provisional figures issued by the stock exchanges.

The day’s gains were capped after a survey showed India’s private sector activity contracted for the first time in over four years in July amid evidence of falling new business and a difficult economic climate.

The HSBC India Composite Output Index, which maps both services and manufacturing activity, fell to 48.4 in July, down from 50.9 in June, indicating an overall contraction.

Meanwhile, rupee Monday gained about 22 paise to trade at 60.88 against the dollar, bouncing back from its all-time closing low of 61.10 on Friday.

Asian stocks ended mixed Monday, with key indices in China, Hong Kong and Taiwan moving up and indices in Japan, Singapore and South Korea declining.

The European stock markets were mixed in early trade as indices in France and Germany inched up as investors welcomed a rise in euro-zone services PMI data, while the UK’s FTSE eased by 0.33 per cent.