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Sensex erases gains in volatile trade; auto, IT stocks rise

IT sector stocks too gained as rupee fell to its 20 week low on Tuesday. IT sector firms earn a large part of their revenue in dollars. If rupee falls, every dollar earned through exports means more revenue is added to the bottomline. 

BT Online        Last Updated: November 16, 2016  | 16:16 IST
Sensex erases gains in volatile trade; auto, IT stocks rise

The Sensex reversed two days of losses on back of rise in auto and IT sector stocks on Wednesday.

The auto sector stocks were battered in the last two trading sessions in wake of demonetisation of Rs 500 and Rs 1000 notes announced by PM Narendra Modi on  November 8.

The BSE auto index rose 211 points to 19,731 level.

IT sector stocks too gained as rupee fell to its 20 week low on Tuesday. IT sector firms earn a large part of their revenue in dollars. If rupee falls, every dollar earned through exports means more revenue is added to the bottomline. The TCS stock rose almost 3.24 per cent to Rs 2,190 level on the Nifty.

MindTree, Infosys, KPIT rose 1.10 percent, 1.63 percent and 2.45 percent, respectively on the NSE.

Meanwhile, the Sensex which gained 300 points in first 5 minutes of trade, could not sustain the momentum and was trading 108 points lower at 26,413 levels.

Nifty too erased early gains and was trading 27 points lower at 8,136 level.

Bajaj Finance and Cholamandalam Finance were the top gainers rising 11.68 per cent and 8.83 per cent, respectively on the BSE.

PC Jeweller fell 8.27 per cent, most on BSE, extending losses from Tuesday's trade. Gujarat Pipavav Port  too fell 6.01 percent.

Market breadth was negative with 1530 stocks falling against 1052 advancing on the BSE.

Global markets

Asian stock markets were mostly higher Wednesday, tracking overnight gains on Wall Street, as investors awaited more policy details from US president-elect Donald Trump. Oil prices bounced back after a brief retreat that snapped an overnight rally.

Japan's Nikkei jumped 1.1 percent to 17,862.21 and South Korea's Kospi gained 0.6 percent to 1,979.65. Hong Kong's Hang Seng index rose 0.6 percent to 22,446.94, while China's Shanghai Composite Index edged 0.1 percent lower to 3,204.38. Australia's S&P/ASX was nearly unchanged at 5,327.70, while benchmarks in Taiwan, Singapore and Southeast Asia gained.

US stocks finished higher on Tuesday as a rally in the oil markets pushed energy companies higher. The Dow Jones industrial average gained 0.3 percent to 18,923.06. The Standard & Poor's 500 index rose 0.7 percent to 2,180.39 and the Nasdaq composite added 1.1 percent to 5,275.62.

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