Sensex rebounds from 3-month low ahead of US Fed meet, jumps 106 points

Mumbai: Recovering from its initial slide, domestic market Monday bounced back from over three-month lows on the back of better-than-expected factory output data as the benchmark BSE Sensex jumped by 106 points to 25,150.35, but market mood remained muted ahead the US Fed meet.

Volatility ruled the session with the index cracking below the 25,000-level in opening deals on prevailing worries over GST bill and the imminent interest rate hike by the US Federal Reserve meeting this week.

However, industrial production growing by 9.8 percent in October on an annual basis on the back of a robust growth in consumer products and capital goods during the festive season, provided some relief.

Meanwhile, the wholesale price index-based inflation eased for the 13th straight and read (-)1.99 percent in November as against (-)3.81 percent in October.

"While investors resorted to some value-buying, there seems to widespread caution ahead of the Fed's meeting on the 16th," said Shreyash Devalkar Fund Manager ? Equities BNP Paribas Mutual Fund.

The 30-share gauge after cracking below the 25,000-mark to scale the day's low of 24,867.73 in early deals, bounced back to wipe off earlier losses on value-buying in several blue-chip stocks and hit a high of 25,194.15 before ending 105.92 points or 0.42 percent higher at 25,150.35.

The gauge had lost 207.89 points in the previous session on a likely US rate hike and persistent GST concerns, while a fall in carmakers' shares added to the rout.

On similar lines, the NSE Nifty, which dipped below the 7,600-level intra-day to hit a low of 7,551.05, finally ended 39.60 points or 0.52 percent higher at 7,650.05 after the day's high of 7,663.95.

Metal stocks were back in limelight after the government on Friday imposed anti-dumping duty of up to 57.39 percent on import of certain stainless steel products from China, Korea, the US and EU for five years to save the domestic industry from cheap shipments.

Hindalco, Tata Steel and Vedanta were major Sensex gainers with gains of up to 3.01 percent.

Buying activity by retail investors also spread to mid-cap and small-cap stocks, which ended with gains up to 0.66 percent higher.

Elsewhere, Asian markets ended lower amid heightening worries about the stability of junk-bond market and falling oil prices. While European stocks were higher as investors looked ahead to this week's US monetary policy meeting. 

Key indices in Asia, like Hong Kong, Japan, Singapore, South Korea and Taiwan moved down by 0.69 percent to 1.80 percent while China moved up by 2.51 percent.

Indices in Europe such as France, Germany and the UK was quoted higher between 0.54 percent and 1.11 percent.

Back home, of the 30-share Sensex pack, 19 scrips ended higher, led by Hindalco, which surged by 3.01 percent, followed by Coal India (2.62 percent) and HUL (1.98 percent).

Other major gainers were M&M (1.96 percent), Tata Steel (1.72 percent), Infosys (1.63 percent), Sun Pharma (1.39 percent), Dr Reddy's (1.32 percent), Vedanta (1.20 percent) and Wipro (1.02 percent).

However, Axis Bank fell by 2.02 percent followed by Tata Motors 1.65 percent, ONGC (0.95 percent), Bharti Airtel (0.92 percent), L&T (0.77 percent) and TCS (0.41 percent).

Among BSE sectoral and industry indices, metal rose by 2.40 percent, followed by IT 0.83 percent, teck (0.79 percent), healthcare (0.71 percent), telecom (0.51 percent), auto (0.40 percent), power

(0.35 percent) and FMCG (0.35 percent).

However, realty fell by 0.19 percent, followed by capital goods (0.15 percent), oil&gas (0.14 percent) and bankex (0.01 percent).

The market breadth turned negative as 1,490 stocks ended lower, 1,148 closed higher while 217 ruled steady. The total turnover decreased to about Rs 2,423.08 crore from Rs 3,853.37 crore last week.