Sensex snaps 6-day losing streak; Nifty reclaims 8,100 mark

Supported by across the board buying after MSCI deferred inclusion of China A stocks to its benchmark index, the key benchmark index BSE Sensex recovered from its nearly 8-month lows and snapped 6-day losing streak on Wednesday. Strength in rupee against dollar too influenced trading sentiments.

The key benchmark indices BSE Sensex and NSE Nifty surged 359.25 points and 102.05 points to 26,840.50 and 8,124.45, respectively.  The BSE Sensex shed 1,367.74 points in the last six days till Tuesday.

The rupee was trading 14 paise higher at Rs 63.78 against the dollar (intra-session).

Hiren Dhakan, associate fund manager, Bonanza Portfolio, says, "MSCI deferred the decision to include China A shares in the MSCI Emerging Market Index, a move that benefitted other emerging markets including India."

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, says, "MSCI's decision on inclusion of China A shares in the EM index had weighed on market performance in June. Now, as the decision of inclusion has been delayed, market has viewed this positively. However, we believe market is likely to focus back on earnings growth outlook for FY16/17. So we are likely to consolidate further down."

Another major news that boosted investor sentiments on Wednesday is that the government approved Rs 6,000 crores worth interest free loan for 1 year to sugar companies in order to help the ailing companies in the sector to clear cane's dues to farmers.

Among the sectoral indices on the Bombay Stock Exchange, BSE IT index, BSE Capital Goods index and BSE Auto index jumped 2.08 per cent, 2.04 per cent and 1.82 per cent, respectively. Rest all other indices also closed in positive.

Barring Cipla, rest all other Sensex companies ended in green on Wednesday. BHEL, Wipro, Bajaj Auto, Reliance Industries and Larsen & Toubro gained 4.21 per cent, 3.60 per cent, 3.06 per cent, 2.49 per cent and 2.37 per cent, respectively.

Among Asian peers, Nikkei 225, Shanghai and Hang Seng closed down by 0.25 per cent, 0.15 per cent and 1.12 per cent, respectively, on Wednesday.