Sensex snaps 2-week losing streak, up 370 pts

The BSE benchmark Sensex snapped its last 2-week-long losing streak by gaining 370 points to regain the 18k mark after nine days to close at 18,241 on the back of sharp dip in global crude oil prices and firm overseas cues.

Analysts said easing crude oil prices reduced investor concerns of inflationary pressures and hike in interest rates.

Frantic short-coverings in the recently battered counters ahead of the expiry of derivatives contract next week also boosted the market sentiment.

IIFL Head of Research Amar Ambani said, "A strong bout of short-covering, coupled with a world-wide relief rally lifted the spirits in the Indian markets.

The BSE benchmark Sensex resumed higher at 17,925.17 but declined immediately to a 4-month low to 17,314.38 triggered by panic selling across-the-spectrum due to speculation over the revision of double tax avoidance treaty with Mauritius .

However, it recovered sharply to 18,268.95 before ending the week at 18,240.68 due to fag-end buying from operators and investors in view of sharp fall in crude oil prices.

Crude oil prices fell after International Energy Agency decided to release 60 million barrels of crude, giving global economy relief from high energy costs. The New York crude oil tumbled nearly 5.0 per cent to about $90 a barrel, while Brent Crude plunged $7 to about $107.

Meanwhile, Food inflation in the country touched a two- and-half-month high of 9.13 per cent in the week ended June 11.

The NSE 50-share Nifty also rose by 104.85 points or 1.95 per cent to end at 5,471.25.

Among the major indices, the BSE-IT shot up by 2.97 per cent followed by bankex 2.50 per cent, the BSE-Teck by 2.12 per cent, the BSE-CG by 1.36 per cent and the BSE Auto by 1.14 per cent.

However, the BSE-Realty declined sharply by 4.91 per cent and the BSE-Consumer Durable by 2.76 per cent. Both, small-cap and mid-cap indices declined sharply by 3.08 per cent and 2.10 per cent respectively due to selling pressure.

From the Sensex pack, Hero Honda shot up by 7.85 per cent followed by HDFC 4.35 per cent, M&M 4.23 per cent, Infosys 3.53 per cent, Wipro 3.53 per cent, L&T 3.52 percent and SBI 3.48 per cent, Tata Power 3.34 per cent, Bajaj Auto 3.33 per cent, ICICI Bank 3.28 per cent and Bharti Airtel 2.89 per cent.

However, Reliance Infra fell by 8.62 per cent followed by Maruti Suzuki 3.95 per cent, DLF by 3.59 per cent, Jaiprakash Asso 2.82 per cent, Reliance Communication 1.68 per cent, Tata Motor 1.65 per cent and Cipla 0.61 per cent.

The total tunrover at BSE and NSE firmed up to Rs 12,842.24 cr and Rs 51,846.36 cr respectively as against Rs 14,635.11 cr and Rs 49,014.84 last week.