BSE Sensex edges higher, govt policy key

SENSEX-NIFTY-HUL-WIPRO:BSE Sensex edges higher govt policy key

 

Reuters Market Eye - The BSE Sensex and Nifty edge higher after range-bound trading through the session.

A rebound in China's factory data helps remove some of the sting after Moody's downgrades Germany's sovereign outlook to "negative", while Spain's debt woes continue to percolate.

Hindustan Unilever shares surge 7.4 percent, after hitting a record high of 475.85 rupees earlier in the session. The rally is sparked by much better-than-expected earnings out on Monday.

However Wipro falls 2.5 percent after India's no. 3 software services exporter issues subdued forecasts for its main IT services business for the current quarter.Traders are also cautious ahead of any potential policy reform measures from the government after last week's presidential elections.

 

J.P.Morgan says market has "moderate" expectations for reforms.

"The Government's policy stance over the next month could be important in determining market direction through to the end of its tenure," it said in the note dated on Tuesday.