Sensex rebounds to end the week with modest gains, up 195 pts

Mumbai: BSE benchmark Sensex rebounded from last week’s sharp tumble, ending the current week with modest gains by 195.18 points at 28,061.14, while broader Nifty garnered 86.45 points to finish at 8,697.60.

The surprise 0.25 per cent rate cut by the new RBI Governor Urjit Patel in its first monetary policy review somewhat sidelined the escalating domestic geo-political tensions due to last week’s surgical strike by Indian Army, while global bounce-back following easing worries about future of German giant Deutsche Bank as well as firming oil price gave fresh flip to the market sentiment.

The RBI cut its policy rate by 0.25 per cent to 6.25 per cent, a 6-year low.

IMF growth upgrade, positive manufacturing PMI for straight ninth month quoting 52.1 in September also lifted Indian stocks.

However the mood tapered from mid-week on ECB’s stimulus concerns amid shaky European markets over Brexit divorce and above all the fresh hawkish comments from top US Fed officials on rate hike before this year-end on strong economic data triggered volatility and profit-booking at the domestic bourses.

The S&P BSE benchmark Sensex resumed higher at 27,997.29 and hovered between 28,477.65 and 27,919.89 before ending the week at 28,061.14, revealing a gain of 195.18 points or 0.70 per cent.

The NSE Nifty also gained by 86.45 points or 1.00 per cent to end the week at 8,697.60.

Buying was led by oil and gas, metal, realty, PSUs, auto, consumer durables, capital goods, power, FMCG, bankex and healthcare sectors well supported by second line shares of mid-cap and smallcap counters.

However, IT and Tech counters witnessed profit-booking.