Sensex Snaps Seven-Day Losing Streak, Capital Goods Shares Shine

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Sensex snapped seven-day losing streak on the back of buying in capital goods, consumer durables and oil & gas shares. For most part of the day Sensex traded in a narrow band as emerging markets remain under pressure due to foreign investor outflows.

Donald Trump’s victory in the U.S. presidential election held last month has sparked outflows from emerging markets, with foreign institutional investors selling a net $413.55 million in Indian shares this month as of Dec. 21.

“Lack of buying has been a major factor in the market’s performances of late,” said Deven Choksey, managing director at KR Choksey Securities.
“We’ll probably see a short change before the derivatives expiry next week but nothing substantial until the impact of demonetisation is clearer and the annual budget is announced.”

Prime Minister Narendra Modi scrapped 500-rupee and 1,000-rupee banknotes on November 8 in a bid to flush out cash earned through illegal activities, or earned legally but never disclosed to the taxman.

The Sensex ended 61 points higher at 26,040.70 and Nifty jumped 7 points to close at 7,986.

Among gainers, Sun Pharmaceutical Industries rose 2.2 percent after the drug maker said on Thursday it had acquired Novartis AG’s cancer drug, Odomzo.

From the Nifty basket of shares, 25 ended higher while 26 closed lower were declining.

The overall market breadth was neutral as 1,249 stocks ended higher while 1,309 closed lower.