Indian shares set to snap losing streak after slipping into correction
Updates at 10:24 a.m. IST
By Bharath Rajeswaran
Nov 19 (Reuters) -Indian shares rose on Tuesday, in what analysts said was a short-term relief rally after a wide swathe of shares slipped into correction territory in recent sessions.
The NSE Nifty 50 .NSEI, which was set to snap its longest daily losing streak in more than 20 months, rose 1.08% to 23,707.75 points as of 10:24 a.m. IST. The BSE Sensex .BSESN gained 1.06% to 78,200.15.
Foreign outflows and weak corporate earnings have battered Indian shares since they hit record peaks in late September.
The Sensex entered correction territory on Monday while the Nifty 50 and the small- and mid-cap indexes slipped into correction on Nov. 13.
On Tuesday, all the 13 major sectors logged gains. IT .NIFTYIT and oil and gas .NIFOILGAS, which were the top losers in the previous session, rebounded about 2% each.
The more domestically-focussed small- .NIFSMCP100 and mid-caps .NIFMDCP100 also rose about 2% each.
The Nifty's relative strength index had slipped below 30 in the last two sessions, indicating "oversold" conditions.
"Such downstreaks and oversold conditions have always led to short-term rebound in the markets and the bounce, which we are seeing in the session, is overdue," said Akshay Chinchalkar, head of research at Axis Securities.
However, a sustained recovery will emerge only if foreign selling comes to a halt and if concerns over weak earnings growth subside, two analysts said.
Among individual stocks, renewable energy solutions provider Suzlon Energy SUZL.NS gained 5% after Morgan Stanley upgraded the stock to "overweight" from "equal-weight", citing potential gains from India's energy transition and attractive valuations.
Construction company Ashoka Buildcon ABDL.NS gained 3.6% after securing two contracts worth 27.91 billion rupees ($330.7 million).
Mamaearth owner Honasa Consumer HONA.NS lost 9.2%, after tumbling 20% in the previous session, as several brokerages flagged challenges to its growth trajectory after the company posted a quarterly loss.
($1 = 84.4000 Indian rupees)
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips, Sonia Cheema and Mrigank Dhaniwala
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