Sensex snaps 4-day losing streak with 748-point leap; RIL, HDFC Bank lead charge

Mumbai, Aug. 4 (PTI): Equity benchmarks made an emphatic comeback on Tuesday after four straight sessions of losses as market heavyweights Reliance Industries and HDFC Bank saw robust buying amid firm global cues.

The BSE Sensex soared 748.31 points or 2.03 per cent to close at 37,687.91, while the NSE Nifty rallied 203.65 points or 1.87 per cent to 11,095.25.

Reliance Industries was the top gainer in the Sensex pack, surging 7.10 per cent, after reports said the company was close to inking a deal to acquire the retail assets of Future Group.

HDFC Bank jumped 3.94 per cent after the RBI approved the appointment of insider Sashidhar Jagdishan as the next MD and CEO of the bank. He will take over from Aditya Puri in October this year.

Maruti, Axis Bank, HDFC, ICICI Bank and Bajaj Finance also finished with gains.

On the other hand, Tech Mahindra, IndusInd Bank, HCL Tech, UltraTech Cement and Infosys were among the laggards, shedding up to 2.75 per cent.

According to traders, stock-specific action in index-heavyweights drove the markets higher.

Further, strong foreign fund inflows and positive cues from global markets cheered investors.

Exchange data showed that foreign institutional investors purchased equities worth Rs 7,818.49 crore on a net basis on Monday.

“Reliance led the day’s show for the bulls and we saw support in late afternoon trade from key pivotals like HDFC Bank and Maruti as Mcap to GDP rose to around 78 per cent.

“Key highlight of today’s trade was good participation in the broader market with smart money finding its way into select midcaps across sectors,” said S Ranganathan, Head of Research at LKP Securities.

BSE energy, finance, realty, bankex, auto, healthcare and metal indices rallied up to 5.60 per cent, while IT and teck ended in the red.

Broader BSE mid-cap and small-cap indices jumped up to 1.23 per cent.

Asian markets closed higher, tracking gains in Wall street following better US manufacturing data.

Stock exchanges in Europe were also trading on a positive note in early deals as investors shrugged off escalating US-China tensions and rising coronavirus cases.

Global oil benchmark Brent crude was trading 1.61 per cent lower at USD 43.44 per barrel.

In the forex market, the rupee settled 3 paise down at 75.04 against the US dollar.

Meanwhile, India’s Covid-19 tally increased to 18,55,745 on Tuesday with 52,050 people testing positive in a day, according to the Union Health Ministry data.

The recoveries crossed the 12-lakh mark, while the death toll climbed to 38,938.