 "Markets end higher amid volatility")
Markets finished higher amid a volatile trading session led by a smart rally in the in the rate sensitive stocks on hopes of rate cut. However, the upside was offset by the losses in metal shares and Index heavyweight Tata Motors which slumped after China’s yuan devaluation.
Provisionally, the Sensex gained 133 points to close at 27,645 levels and the Nifty closed at 8,382 levels up by 32 points.
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(updated at 3pm)The markets have turned flat in late-noon trades due to deepening losses in the embattled metal stocks.
At 3.00pm, the Sensex was at 27,537, higher by 24 points and the Nifty was at 8,353, up 4 points.
The metal sector is taking it on the chin; Vedanta has plunged by nearly 10%, while Tata Steel, Hindalco and NMDC have shed 3-5% each.
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(Updated at 14.03 pm)
The benchmark indices are trading firm this afternoon, amid volatility, as the consumer inflation and industrial output data released on Wednesday evening seem to have lifted the gloom of non-passage of GST bill in Parliament and the yuan devaluation by China.
The CPI-based inflation fell sharply in July to its lowest in the current series and IIP climbed to a four-month high. Moreover, the rupee snapped a six-day losing streak to appreciate by 12 paise to 64.65 against the US dollar in trade. The retail inflation fell to 3.78% in July from 5.40% in the month before and the growth in factory output accelerated to 3.8% in June from 2.7% in the previous month.
At 1.45 PM, the Sensex was at 27,612, higher by 100 points or 0.3% and the Nifty was at 8,379, up 30 points. In the broader markets, the midcap index has gained 0.6% at 11,288, while the smallcap index is flat at 11,673. However, the market breath is weak. Out of 2,764 stocks traded on the BSE, there are 1,214 advancing stocks as against 1,453 declines.
SECTORS & STOCKS
Pharma stocks are leading the way in trade this afternoon, with Lupin, Cipla and Sun Pharma gaining 1-3% each. SBI, Hindustan Unilever and Infosys are the other significant gainers on the BSE.
Banking stocks are also trading firm as the macroeconomic numbers released yesterday have raised hopes of a rate cut by the RBI in the next monetary policy. SBI, Axis Bank and the HDFC twins have gained 1-2% each.
The Adani group shares, including Adani Ports and Adani Power have gained up to 3% each on fundraising plans. Moreover, Adani Ports has also gained due to its inclusion in the benchmark Nifty scrips.
On the other hand, metal shares are among the top losers amid fears that exports to China could be hurt by the devaluation of the yuan. Hindalco, Vedanta and Tata have shed 3-6% each.
Telecom majors, including Bharti Airtel, Idea cellular and RCom have surrendered their early gains and have edged lower by upto 1% each. The telecom shares had gained this morning as the government, in a significant move that could address the problem of call drops, allowed spectrum sharing between telecom operators.