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Sensex snaps 3-day losing streak, ends 230 pts up, Nifty at 8,179

Sensex snaps 3-day losing streak, ends 230 pts up, Nifty at 8,179

Markets surged as consumer stocks gained on hopes lower inflation and a larger-than-expected rate cut by the central bank in September would boost spending in the coming festive season.

Dalal Street also followed positive trend seen in other Asian markets as the US job data released on Wednesday dampened prospects of Federal rate hikes.  Photo: Reuters Dalal Street also followed positive trend seen in other Asian markets as the US job data released on Wednesday dampened prospects of Federal rate hikes. Photo: Reuters

Snapping the three days long losing streak, the domestic markets ended the day stronger as consumer stocks gained on hopes lower inflation and a larger-than-expected rate cut by the central bank in September would boost spending in the coming festive season.

The S&P BSE Sensex reclaim its crucial psychological level of 27,000 and ended the day 230 points up at 27,010.14, while broader CNX Nifty quoted 8179.50, up 71.60 points.
 
Market sentiment remained positive with 21 of the 30 stocks ending the day in green.

Tata Motors was the top Sensex gainer and ended the day 8 per cent up after the auto major said its Jaguar Land Rover (JLR) sold 47,634 units globally in September, up 3 per cent compared to the same month last year.

Dalal Street also followed positive trend seen in other Asian markets as the US job data released on Wednesday dampened prospects of Federal rate hikes.

"We continue to expect the Nifty to remain within a small range of 8,250 to 8,050 whilst the 8,250 mark is likely to act as a major hurdle for the bulls. It's advisable to stay light on positions and focus more on stock specific moves," said Angel Broking in a report.

The country kicks off its two-month religious festive period on Monday, a time considered auspicious to buy big-ticket items such as cars, and when promotions abound. Company executives say they see the Reserve Bank of India's unexpectedly sharp 50 basis point cut last month as a lifeline.

Consumers have already been showing an eagerness to spend more on small luxuries, like movie tickets and fancy haircuts, even as the overall economy struggles to take off after a period of cooler growth.

"Lower inflation, Seventh Pay Commission and RBI's rate cut are leaving higher discretionary income with urban people," said Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance Co.

Zee Entertainment ended over 8 per cent up on better-than-expected September-quarter results.

Shares of Adani group companies were the top gainers among BSE large caps after Australia cleared way for the group's $7 billion coal and rail project.

Among Asian markets, China's Shanghai Composite ended the day 2.32 per cent higher, while Hong Kong's Hang Seng index settled 2 per cent up. Japan's Nikkei closed with an uptick of 1.15 per cent.