Benchmark share indices reversed intra-day losses to end marginally higher on Monday, shrugging off weak global cues, led by gains in oil and gas shares after global crude oil prices eased. Further, gains in rate sensitive shares on reports that the Reserve Bank of India may cut key policy rates also aided sentiment.
The BSE benchmark index- Sensex closed at 15,988 up 23 points and the 50-share Nifty shut shop at 4,848, up 7 points.
Asian shares tumbled on Monday, pushing the broader Tokyo market to a 28-year low, as investors extended a rout of global stocks and worried about a nightmare scenario of euro-zone breakup, US economic relapse and a sharp slowdown in China. The Nikkei slipped 1.7% to close at 8,295, Hang Seng ended weaker by 2% at 18,185 and the Shanghai Composite plunged nearly 3% to 2,308.
The European markets are trading on a flat note. The CAC40 has recovered some of its early losses but the DAX is down 1%.The London Stock Exchange is closed on account of spring holiday.
Oil and gas shares gained after global crude oil orices eased on concerns that demand for the commodity would remain subdued on account of the global economic slowdown. Index heavyweight Reliance Industries ended up 1.3% at Rs 693 while ONGC ended up 3.2% at Rs 254.
Interest rate sensitive shares from banks and auto gained on hopes of a rate cut by the RBI at its policy meet in June. In the banking pack, HDFC Bank gained 1% to RS 497, ICICI Bank rose 1% at Rs 790 and SBI ended up 1%.
In the auto segment, Tata Motors, Mahindra and Mahindra, and Hero MotoCorp each ended up 0.7-1.9%.
Capital goods shares gained on value buying after they corrected last week following sharp contraction in GDP. L&T was the top Sensex gainer up 3.4% at Rs 1,173 while BHEL ended marginally higher.
On the other hand, consumer durables, FMCG, metal, healthcare, IT and power indices ended lower in trades today.
Shares of aviation companies Jet Airways and SpiceJet rallied more than 5% each on reports that the aviation ministry have proposes abolition of service tax on air tickets & sales tax reduction on aviation turbine fuel (ATF) from an average 25% to a uniform 4%. “The proposals may not only nurse bleeding carriers back to profits, but also rein in soaring fares," the report suggests.
Shares of Kishore Biyani promoted Future Group companies – Future Capital Holdings (FCH) and Pantaloon Retail- gained nearly 7% each in otherwise weak market, after the board of both these companies have approved a 40% stake sale in FCH to U.S. private equity firm Warburg Pincus LLC at a price of Rs 162 per share.
Shares of fertiliser manufacturer gained ground ahead of arrival of the monsoon season, which is likely to boost fertiliser demand. According to the Indian Meteorological Department (IMD) forecast, monsoon is expected to hit the southern state of Kerala in the next 48 hours.
The broader markets ended marginally in the red. The BSE mid-cap index slipped 12 points to 5,809 and the small-cap index shed 14 points to 6,180.
The overall breadth was negative as 1,449 stocks declined while 1,204 stocks advanced.
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