Sensex rises 288 points on inflation data, global cues; Nifty tops 11,500

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NEW DELHI: After a one-day hiatus, benchmark indices went back to winning ways on Tuesday encouraged by easing inflation and riding on positive cues from global markets. Hopes of an early vaccine also kept the mood sanguine.

European market opened with gains, supporting investor sentiments. Meanwhile, India’s retail inflation in August of 6.69 per cent was lower than the 6.73 per cent recorded in July, but it remains above the upper end of the RBI’s target.

The 30-share pack Sensex rose 288 or 0.74 per cent, reclaiming 39,000 level. The index closed at 39.044. Its broader peer NSE Nifty advanced 82 points or 0.71 per cent to 11,522.

“Benchmark indices traded sideways in a tight range, before ending the day with a positive bias. Banking and Pharma indices contributed most to the market gains. Global cues were also positive. Domestically, favourable inflation data and expectation of it going down further aided the positivity,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance:

  • Broader market indices sees buying, gain for fourth straight day
  • ADF Foods spikes 5% after Kacholia picks nearly 1.5 lakh shares
  • Exuberance in IT stocks continue, Mphasis, Naukri surge; Nifty IT up 0.6%
  • Nifty50 based ETF crosses AUM of Rs 1 lakh crore
  • 165 stocks hit 52-week highs: Infosys, IEX, Emami, Infibeam, IndiaMART, Atul, Affle India and HCL Tech among top names

Investors will look forward to the outcome of the US Federal Reserve’s policy meet on Wednesday as it will be the first meeting since the chairman Jeremy Powell outlined a shift in policy to higher tolerance for inflation at Jackson Hole Symposium.

Back home, among bluechip names, IndusInd Bank was the biggest gainer on Tuesday, up 4.68 per cent at Rs 637.85. Cipla, UPL, Axis Bank, Bharti Airtel, ICICI Bank, Sun Pharma and Bajaj Finance registered gains in the range of 2-3 per cent.

On the other hand, jewellery and watchmaker Titan was the biggest loser among Nifty stocks, down 1.35 per cent at Rs 1,172. Maruti Suzuki, HDFC Life, Eicher Motors, ITC, BPCL and Asian Paints were among other top losers.

Broder market indices continued their outperformance over their headline peers. Nifty Smallcap advanced 1.53 per cent and Nifty Midcap 1.09 per cent, both climbing for the fourth straight session.

Rally in the broader market has got a booster shot with Sebi’s move to change rules of multicap funds, but this is happening on speculation that fund managers will buy mid and smallcap stocks. Investors will closely track decisions by AMCs as if most of them merge the scheme with some other, then there could be a negative impact.

Trent, Quess Corps, Godrej Agrovet, Deepak Nitrate, Procter & Gamble Health and Radico Khaitan were among the top gainers from the broder market space, rising in the range of 6-9 per cent.

Meanwhile, Prestige Estate Projects, National Aluminium, Indiabulls Housing Finance, PVR, Century Textiles and Sunteck Realty were among the biggest mid and smallcap losers, down 2-4 per cent.



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