Sensex Up Over 200 Points, Snaps Two-day Losing Streak

The Sensex surged more than 200 points and Nifty also ended higher on Monday after two days of losses as software services exporters such as Infosys rallied on a weaker rupee while lenders gained a day before the Reserve Bank's policy review.. However, sentiment remained broadly cautious after foreign investors sold a net $175.73 million worth of shares on Friday, the third straight session of net sales that totalled $494.7 million.. Investors will be closely eyeing the Reserve Bank of India's policy review on Tuesday. The central bank is widely expected to keep interest rates on hold, but analyst say it may loosen tight cash conditions by easing mandatory bond requirements for lenders among other potential measures.. Global factors will also be critical after sharp falls late last week. In India, the Nifty fell 2.4 per cent over the previous two sessions to end on Friday at its lowest close since July 15.. "Symptoms are all positive only. But everything depends on the RBI policy, which will pave the direction for the short-term. Outlook remains firm and it's still a buy-in-dips market," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.. The broader Nifty ended up 1.07 per cent at 7,683.65, while the Sensex gained 0.95 per cent to 25,723.16.. Shares in software services exporters gained after the rupee last week posted its biggest weekly fall since record low levels in August last year.. The local currency rebounded slightly on Monday but was still trading weaker than 61 per dollar.. Infosys shares rose 3.72 per cent, marking their biggest single-day gain since June 11. Wipro Ltd gained 2.4 per cent, Tech Mahindra Ltd added 1.9 per cent and HCL Technologies Ltd ended 2.6 per cent higher.. Lenders gained on hopes the RBI would announce measures to ease tight liquidity conditions and take action to help spur lending. State Bank of India ended up 1 per cent, while ICICI Bank Ltd closed 1.1 per cent higher.. Oil marketing companies also gained, with Indian Oil Corporation up 4.4 per cent and Bharat Petroleum Corp Ltd higher 4 per cent, as brent crude fell to its lowest settlement since April 2 on Friday.. Shares in tyre makers gained as traders noted rubber prices hovered near their lowest levels in 4-1/2 years. Apollo Tyre Ltd ended 5.3 per cent higher, while JK Tyre and Industries Ltd closed up 5.6 per cent.. Auto companies also rose after reporting robust sales numbers for the month of July. Maruti Suzuki India Ltd ended 2.3 per cent higher, while Mahindra & Mahindra Ltd added 1 per cent.. However, among decliners, Syndicate Bank ended 6.9 per cent lower after its chairman was arrested over allegations of taking bribes to grant loan extensions to a company.. Copyright: Thomson Reuters 2014

Sensex Up Over 200 Points, Snaps Two-day Losing Streak

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