Market barometers Sensex and Nifty on Thursday ended higher after swinging between gains and losses during the day as participants hoped for further easing of repo rate to boost consumer sentiment amid macro-economic challenges.
At the closing bell, the 30-share BSE Sensex settled 170.42 points, or 0.42 per cent, higher at 40,286.48. The index swung between a high of 40,348.61 and low of 40,026.99 during the session.
While, the NSE gauge Nifty ended with a gain of 31.65 points, or 0.27 per cent, at 11,872.10.
The market underwent bouts of volatility during the day as investors fretted over a host of negative factors like higher retail inflation print, weak IIP data and worries over US-China trade deal.
On the Sensex chart, ICICI Bank, Infosys, Bajaj Finance, Maruti and HDFC Bank were among the top gainers -- rising up to 2.67 per cent.
On the other hand, IndusInd Bank, Vedanta, Tata Motors, ONGC and HUL fell up to 2.90 per cent.
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Sectorally, BSE IT, consumer durables, finance, bankex, teck and auto indices rose up to 1.07 per cent.
While BSE telecom, metal, capital goods, power, FMCG and energy indices fell up to 2.76 per cent.
Broader BSE midcap and smallcap indices ended on a flat note.
After weak set of government data indicated deepening of economic slowdown, Moody's Investors Service lowering India's GDP growth forecast further hit investor sentiment.
Moody's has slashed economic growth forecast to 5.6 per cent for 2019, saying government measures do not address the widespread weakness in consumption demand.
"Trend of the market is dictated by macro releases, as WPI inflation numbers indicated weak demand in the manufacturing segment. RBI is likely to give more focus on growth rather than rising inflation in the near term which may influence a few more rate cuts. In-terms of earnings growth, we notice that the strength of Q2 result slowed by the end of the season, which can put pressure on stock performance," Vinod Nair, Head of Research, Geojit Financial Services Ltd, said.
A broad-based weakness prevailed in the market as weak macro numbers and negative global cues kept investors on edge.
Wholesale prices-based inflation eased further to 0.16 per cent in October, as against 0.33 per cent in September due to subdued prices of non-food articles and fall in prices of manufactured items, government data showed on Thursday.
On the other hand, retail price based consumer inflation spiked to 16-month high of 4.62 per cent in October on costlier food items, reducing the headroom for a rate cut by the RBI in its monetary policy due next month.
The industrial production shrank by 4.3 per cent in September, registering the weakest performance in seven years due to output decline in manufacturing, mining and electricity sectors.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul on a mixed note, while those in Europe were also trading in the red in their respective early deals.
Meanwhile, the Indian rupee recovered 12 paise to 71.96 against the US dollar.
In a relief for domestic market, foreign institutional investors have continued to invest in Indian equities despite the economic challenges.
Foreign investors bought equities worth Rs 584.92 crore on Wednesday, as per provisional data on stock exchanges.
Brent crude futures, the global oil benchmark, rose 0.64 per cent to USD 62.77 per barrel.