Sensex Logs First Gain This Year

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The 30-share Bombay Stock Exchange Sensex snapped its five-day losing streak and posted its first daily gain in the new year.

After losing around 485 points in the previous sessions, Sensex closed the day 36 points higher at 20,729 points while the broader 50-share Nifty rose 16 points to 6178 points.

The Sensex was pushed up by the Coal India Ltd (CIL) stock on news that the company’s board may declare a dividend next week. The CIL scrip rose by 4.77 per cent to `288.75. Tata Consultancy Services also did well on earning expectations and rose 1.12 per cent to `2,233.

Marketmen said that hopes were high from blue-chips on their quarterly earnings.

Asian markets too were firm after strong trade data showed that economic recovery is under way.

Brokers are still bullish on the new year. A recent report by Motilal Oswal said, “ We expect 2014 to see improvement in growth rates and moderation in inflation. This should lead to another year of positive returns for Indian equities.” Last year Indian equities delivered a 9 per cent return, said the report.

On Wednesday, value buying took place in healthcare, auto and PSU stocks. The healthcare index rose 1.04 per cent, the auto index 0.71 per cent, the bankex 0.14 per cent and the FMCG index by 0.17 per cent.

Foreign institutional investors continued their selling spree and sold local shares worth a net `567.02 crore, according to provisional stock exchange data.

The rupee that gained in morning trade may have a difficult year ahead, according to an HSBC report. The report said that the year is likely to be no easier than the last year for several Asian currencies including the rupee.

“Despite a better rupee performance in recent months, the currency remains challenged by a weak external balance and a capital account that is sensitive to broader risk appetite,” the report said.
 

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