Sensex extends rally to 4th day; Cipla gains, Coal India falls
Heavy computer-based trading caused a rush of orders for dozens of stocks, ranging from well-known bellwethers like General Electric to tiny Wizzard Software Corp, whose shares soared to $14.76 after closing the previous day at $3.50. The NYSE has cancele
The BSE Sensex extended its winning streak to a fourth day. However, markets were extremely flat in the absence of domestic or global cues.
Markets moved higher despite a slowdown in the manufacturing growth in July, which grew at the slowest pace since November.
The Sensex gained 21 points or 0.12 per cent to 17,257 while the broader Nifty index advanced 11 points to 5,240. The rupee, too, traded higher at 55.55 against the dollar at 03.50 p.m.
Indian markets have moved sharply over the last few days on the back of strength in global stocks. The rally in global markets seemed to be tapering today, but positive trade in European stocks boosted sentiments. Earlier, Asian stocks struggled after China's manufacturing output in July, as measured by the PMI index, grew at the slowest pace in eight months. A slowdown in China adversely affects the global economy.
Healthcare stocks outperformed the broader markets. Drug maker Cipla was the top Nifty gainer rising 4.5 per cent. The company beat profit estimates in the June quarter. Infra major Jaiprakash Associates advanced 3.5 per cent on the back of strong quarterly earnings.
PSU lenders bounced back after the sharp cuts yesterday. SBI, India's biggest PSU lender, closed 1.4 per cent higher, while state run Bank of Baroda advanced 1.2 per cent higher.
Capital goods stocks also saw strong buying interest. India's biggest power equipment manufacturer BHEL closed with 2.2 per cent gains.
21 of the 50 stocks on the Nifty ended lower. Coal India was the top Nifty loser, down 2.8 per cent. The company has not been able to reach an agreement on the penalty clause, which is invoked if it fails to meet the assured supply to power firms.
Iron oil miner Sesa Goa and state run oil explorer ONGC also closed with 2 per cent losses.
The market breadth was positive with 67 per cent stocks rising on the BSE 500 index.