Sensex Snaps 7-Day Losing Streak, Ends 123 Points Higher

Indian benchmark equity indices Sensex and Nifty snapped their seven-day losing streak to close higher on Thursday, as traders rushed to cover their short positions in the futures and options (F&O) segment on account of expiry of September contracts. The Sensex closed Thursday's volatile session 122.67 points or 0.39 per cent higher at 31,282.48 while the Nifty50 index settled 33.20 points higher at 9,768.95. Both the indices had fallen in each of the seven previous sessions, marking their longest losing streak since mid-December. As of Wednesday's close, the NSE index had fallen about 4 per cent since its record high on September 19.

Expectations of further rate hikes by the Federal Reserve, tensions over North Korea, rising crude prices and worries of widening fiscal deficit on increased government spending to boost a slowing economy dented sentiment in recent days.

Analysts say weakness in Indian equities is likely to persist in the near future.

"For a day or two, because of F&O expiry, some pullback is possible. But the short term (trend) looks down due to bigger problems like dollar appreciation and rising crude prices, while lower exports and possibility of higher fiscal deficit are also adding to the pressure, said Sumit Pokharna, deputy vice president at Kotak Securities.

ACC was the top gainer among the Nifty50 stocks, rising 3.52 per cent. Dr Reddy's Lab, Coal India, Kotak Mahindra Bank and Bharti Infratel were among the other prominent gainers in the Nifty. ITC and HDFC Bank, which had witnessed profit-booking in the recent selloff, also rose over 1 per cent each supporting the Nifty.

The BSE Midcap and BSE Smallcap indices closed 0.77 per cent and 0.90 per cent higher respectively.

(With agency inputs)