Indices reverse losses to end in green

Indices reverse losses to end in green

Mumbai, Dec 18: Sharp buying in last hour helped equity benchmarks end the session with gains of 0.20 percent. The Nifty ended above 10,900.
A further dip in crude oil prices, following fears of economic slowdown in global economies helped the market extend their gains. In fact, the market managed to reverse all of its losses through the session. On an intraday basis, the Sensex fell over 200 points.
The day began on a negative note, following weak handover from Wall Street as well as Asian markets. Indices traded in the red for a larger part of the day, but last hour saw the tables turn.
Barring IT segment, all sectoral indices ended in the green. Major gainers included automobiles, banks, energy, metals and pharma, among others.
At the close of market hours, the Sensex was up 77.01 points or 0.21% at 36347.08, and the Nifty up 20.30 points or 0.19% at 10908.70. The market breadth was positive as 1416 shares advanced, against a decline of 1117 shares, while 160 shares were unchanged.
Sun Pharma, Vedanta, and Bajaj Finance gained the most, while Infosys, Wipro, ZEE and UPL were the top losers.
Stocks in the news
Share price of Glenmark Pharma gained nearly 1 percent after USFDA approval for Fluocinolone Acetonide oil.
Share price of Ashoka Buildcon added 3 percent on investment by Morgan Stanley India Infrastructure in the gas distribution business of the company.
Share price of Bombay Dyeing and Manufacturing Company locked at 5 percent upper circuit on closure of loss making subsidiary.
Sadbhav Infrastructure Projects gained nearly 1 percent after an amicable settlement between company, promoter and Montecarlo.
Mahindra and Mahindra shares gained 2 percent on signing pact to increase its equity in associate firm Sampo.
Infibeam Avenues shares rallied 1 percent on strategic and financial alliance with Suvidhaa Infoserve.
Zee Entertainment Enterprises shares plunged 8 percent after global research firm Bank of America Merrill Lynch downgraded the stock to underperform with a target price at Rs 375, implying 25 percent potential downside.
Global Markets
Stocks in Asia were lower on the back of weak handover from Wall Street due to concerns of a slowdown in the global economy. A speech by Xi Jinping failed to lift sentiment. The Shanghai composite slipped 0.82 percent to close at about 2,576.65 and the Shenzhen composite was lower by 0.813 percent to finish the day at around 1,312.55.
European stocks were lower too as investors turned wary of global slowdown concerns. The FTSE 100 opened 0.4 percent lower, the CAC open down around 0.6 percent, while the DAX opened 0.3 percent lower, according to IG. The pan-European Stoxx 600 was down 0.3 percent at the open.
Oil Prices
Brent crude prices dropped more than $1 on Tuesday, falling for a third straight session, as reports of inventory build and forecasts of record shale output in the United States, now the world’s biggest producer stoked worries about oversupply.
Concerns over future oil demand amid weakening global economic growth and doubts over the effectiveness of planned production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) also pressured prices, traders said.
International benchmark Brent crude oil futures were at $58.62 per barrel, down 99 cents, or 1.66 per cent, from their last close. Brent, which has slipped more than 4 per cent in the past three sessions, fell to as low as $58.10 a barrel on Tuesday, down more than $1.50 from the previous day’s close. US West Texas Intermediate (WTI) crude futures were down 91 cents or 1.82 per cent at $48.97 per barrel.