Sensex up 75 points on firm global cues; metal, IT stocks shine

Markets snap 6-day losing streak Sensex still below 26K-mark

Sensex up 75 points on firm global cues; metal, IT stocks shine

The INDIA VIX moved to green and is up 2.21% at 19.5200.

USA stocks fell from record highs on Friday as investors kept an eye on oil prices and waited for remarks by several Federal Reserve officials on monetary policy. GDP growth doubled to 0.6 per cent from 0.3 per cent in the second quarter as growth accelerated in most major seven economies, with the exception of the United Kingdom and Germany, where growth slowed in the third quarter, the OECD said.

"Even as stock prices adjust to a new normal post the demonetisation drive, dollar's continued surge has ensured that FIIs persist with the exit theme, putting unrelenting stress on Indian stocks", Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, said. The frontline indices shaved off about one and half percent and breached 25,800 (Sensex) and 7,950 (Nifty) levels on the downside. The Asian markets have made an all green start tailing the gains in the USA markets, Japanese markets too has rebounded as markets digested a tsunami warning in the Fukushima region.

The benchmark Sensex on Monday crashed 385 points to hit a six-month low of 25,765.14 following sustained foreign outflows amid uncertainty about the economic impact of the demonetisation move.

With initial confusions over the likely impact of the demonetization giving way to a clearer picture about the possible consequences emerging, market experts and investors are turning cautious. Foreign investors have pulled out close to $ 3 billion from the Indian capital market this month so far on lingering concerns over the government's demonetisation decision and fears of a rate hike by the US Federal Reserve. The risk on trade is back in action as globally bullishness resurfaces with Japan & the USA indices in new bull markets.

The Nifty too was trading above the 8,000-mark by surging 83.30 points or 1.05 per cent at 8,012.40 in early trade.

"The surprise outcome of the U.S. elections and fears of a probable United States rate hike will continue to hamper market sentiments", James said.

Latest News