Nifty rises over 1 per cent, on track to snap eight-session losing streak

Mumbai: The Nifty rose more than 1 per cent on Monday, on track to snap its eight-session losing streak, on value buying in blue chips such as Housing Development Finance Corporation, while strength in Asian shares also helped. The 50-share index lost as much as 4.4 per cent in the eight straight sessions of falls, compared with a 1.5 per cent gain in the MSCI Asia Pacific Ex Japan index. 

Traders said concerns about rising tensions in the Middle East and that India's earnings growth would be protracted compared to estimates had been overdone, while the start of a new derivative series and a new fiscal year on Wednesday also helped. Asian stock markets rose on Monday, with China stocks nearing a seven-year peak on hopes for more infrastructure spending and policy stimulus, while oil prices suffered further from excess supply. 

"Value is emerging after tax management-led losses in the previous derivative series," said G. Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm, adding at least 5 per cent upside was expected in the next two-three months. The Nifty was up 1.5 per cent, while the Sensex was higher 1.6 percent.  Blue-chips led gains with HDFC rising 2.9 percent and ITC up 2.8 per cent. Larsen & Toubro rose 2.9 per cent and HDFC Bank advanced 1.9 per cent