Evening Walk Down D-Street: Sensex snaps 8-day losing streak; Pain not over, yet!

A breather for D-Street! Indian market snapped its 8-day losing streak and closed with handsome gains led by large-cap names. The S&P BSE Sensex rallied over 400 points after 13 sessions while Nifty50 reclaimed 10700 levels. It posted best daily gain since Jan 31, 2019, when the index rose by 1.68 percent. The metal pack led the rally and Vedanta was the clear winner. It closed with gains of nearly 5 percent. Apart from that, PSU Banks also rose by 1.72 percent ahead of the Governor’s meet with the bank chiefs to discuss the transmission of rates. The advance-decline ratio was on the whole balanced and therefore the current bounce should be taken with a pinch of salt, suggest experts as the pain may not be over yet. “Wednesday’s rally was on the back of multiple global events. The first one is US President Donald Trump has hinted that a positive outcome could be expected from the US-China trade. Apart from that stable rupee and crude oil prices supported the rally,” Yogesh Mehta, VP, retail research at Motilal Oswal Securities told Moneycontrol. “We saw a relief rally but the pain may not be over yet. It looks like money is moving towards defensives which carries low risk and there is potential for growth. We are recommending, corporate banks such as Axis Bank,” he said. Stocks in news: Shares of ADAG stocks remained under pressure after Anil Ambani was held guilty of contempt in the Ericsson debt payment case

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