Sensex snaps two-day losing streak on rebound in IT shares

Mumbai: Benchmark Sensex closed higher by 150 points on Wednesday, snapping its two-day losing streak following a rally in IT stocks amid a surge in the US markets.

The 30-share BSE Sensex rose by 149.85 points or 0.19 per cent to settle at 79,105.88. During the day, it gained 272.91 points or 0.34 per cent to hit a high of 79,228.94.

The NSE Nifty closed marginally up by 4.75 points or 0.02 per cent at 24,143.75.

Among Sensex firms, Tata Consultancy Services, HCL Technologies, Tech Mahindra, Infosys, Mahindra & Mahindra and Tata Motors were the biggest gainers.

UltraTech Cement, JSW Steel, Tata Steel, Adani Ports, Power Grid and Bajaj Finserv were among the laggards.

Mining shares declined after the Supreme Court rejected the Centre’s plea for prospective effect of its July 25 verdict, which upheld the power of states to levy tax on mineral rights and mineral-bearing land, and allowed them to seek a refund of royalty from April 1, 2005 onwards.

In Asian markets, Seoul and Tokyo settled higher while Shanghai and Hong Kong ended lower.

European markets were trading in positive territory. The US markets ended significantly higher on Tuesday.

"The PPI (Producer Price Inflation) numbers from the US indicate softening of inflation, and a confirmation of this declining trend is likely from the CPI numbers coming today. The US market moved up yesterday in anticipation of this and a rate cut by the Fed in September," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,107.17 crore on Tuesday, according to exchange data, while Domestic Institutional Investors (DIIs) bought equities worth Rs 1,239.96 crore.

Global oil benchmark Brent crude climbed 0.59 per cent to USD 81.17 a barrel.

The BSE benchmark tumbled 692.89 points or 0.87 per cent to settle at 78,956.03 on Tuesday. The NSE Nifty slumped 208 points or 0.85 per cent to 24,139.