Markets end a 5-day losing streak

Markets gained for the first time in 2014, amid a range bound trading session, snapping a five-day losing streak led by Reliance Industries and IT major TCS.

Meanwhile, upside gains were capped as sales by foreign institutional investors in the previous three sessions weighed on investor sentiment.

The 30-share Sensex gained 36 points to end at 20,729 and the 50-share Nifty gained 12 points to end at 6,175.

Foreign institutional investors continued to remain sellers for the third straight day on Tuesday with sales of Rs 567 crore as per provisional data released by the stock exchange. They were also sellers in index futures to the tune of over Rs 2,300 crore in index futures in the previous three sessions.

The rupee strengthened against as strong Asian cues boosted sentiment for the Indian currency. The rupee was trading at Rs 62.13 compared with the previous close of Rs 62.31.

Asian markets rebounded on Wednesday after encouraging trade data raised hopes of growth in the US. Japan's benchmark index, the Nikkei, was the top gainer in the region ended up 1.5%. Among other stocks in the region, Shanghai Composite rose 0.2%, Hang Seng gained 1.2% and Straits Times ended 0.8% higher.

BSE Healthcare was the top gainer among the sectoral indices up 1% followed by Auto, Oil and Gas indices.

Pharmaceutical companies which earn a significant amount of revenue from exports were up as the rupee continued to remain above Rs 62 mark against the US dollar. Sun Pharma gained 1.4%, Cipla gained 3.4% and Dr Reddy's Labs ended up 1.6%.

Coal India gained nearly 5% after the company announced that the board will meet on January 14, to consider an interim dividend.

Among other Sensex gainers, TCS ended up 1.1%, Reliance Ind gained 0.7% and HDFC ended 0.9% higher.

Tata Motors continued to witness short covering at lower levels after the stock corrected following dismal December sales. The stock ended up 1.4%.

However, Infosys continued to witness profit taking ahead of its third quarter earnings due for release on Friday. The stock ended down 0.8%. Larsen & Toubro lost 2% on profit taking after recent gains.

Among other shares, Aban Offshore ended higher by 2% at RS 432 after the company said it has won a contract for deploying jack-up rig Deep Driller 5, which is expected to generate revenue of $61.3 million (about Rs 380 crore).

Shares of public sector underrating (PSU) banks gained up to 8% on hopes of interim dividend. Syndicate Bank, Allahabad Bank, Bank of India and Union Bank of India gained nearly 5% each, while  IDBI, Canara Bank, Andhra Bank, Indian Overseas Bank and Bank of Baroda ended up 3-5%.

Videocon Industries ended nearly 1% higher at Rs 179 after the company said it has completed the sale of its entire stake in a giant gas field off Mozambique to ONGC Videsh and Oil India.

Mastek has soared nearly 9% to end at Rs 199 ahead of board meeting today to consider the share buyback proposal.

The broader market trimmed some of their early gains. The BSE Mid-cap ended up 0.6% and Small-cap index ended up 0.3%.

Market breadth was positive with 1,507 gainers and 1,066 losers on the BSE.