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Markets ended marginally higher on Tuesday with financials leading the gains on hopes that easing consumer inflation, data which is due on Wednesday, would help pave the way for lower interest rates.
Generating positive cues for the markets, a Reuters’ survey has estimated the consumer inflation rate for the month of October to cool down to 5.8% from 6.4% in the previous month due to a sharp fall in food and oil prices.
The fall in Brent Crude prices to a four-year low of $81.23, which is likely to help lower the fiscal deficit, also boosted sentiments.
The 30-share Sensex ended up 35 points at 27,910 and the 50-share Nifty ended up 18 points at 8,363.
The broader market outperformed their larger peers with BSE Mid-Cap index closing with a gain of 0.7% and the Small-Cap index closing up 0.2%. The market breadth ended positive with 1,564 gainers against 1,442 losers.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 355.30 crore yesterday, provisional data released by the stock exchanges showed.
Global Markets
Nikkei has outperformed its Asian peers and closed up around 2% on reports that Prime Minister Shinzo Abe may postpone a planned sales tax increase.
Hang Seng and Shanghai Composite became subdued on account of profit booking and closed with a gain of 0.2% and a loss of 0.1% respectively.
European markets have opened higher amid firm global cues. The fixing of Novemeber, 17 as the start date for a long-awaited tie-up between Hong Kong and China stock markets which will global equity investors to buy Chinese stocks from Hong Kong boosted sentiments as shares in those markets were the strongest among major world markets. FTSE 100 index has gained around 0.1%, CAC 40 and DAX indices are up around 0.4% each.
Sectors and Stocks
The BSE Bankex index closed with the highest gain of around 0.8% followed by BSE Capital Goods and Auto indices which closed up around 0.6% each. On the other hand, consumer durables index dipped 1.2% and FMCG index ended down 0.7%.
Hopes of a rate cut by the central bank lifted the bank shares. Axis Bank gained around 1.6%, and ICICI Bank and HDFC Bank gained 1.4-1.6% each. SBI too closed with a gain of 0.4% after paring losses.
Oil & Gas stocks witnessed fresh buying with Reliance and GAIL closing with gain of 0.7-1.6% each. However, ONGC shares remained an exception and closed flat.
Rate sensitive auto shares closed mixed. M&M shares gained around 2.4% and Maruti Suzuki closed up 0.5%. Tata Motors rebounded and closed with a gain of around 0.2%.
IT stocks lost ground despite gains in the US Dollar. Infosys lost more than 1% and Wipro lost around 0.2%. However, TCS was an exception to the trend and gained around 0.3%.
Among pharma shares, Sun Pharma gained around 0.7% while Dr Reddys Lab closed down around 0.4% mainly on profit booking. Cipla too declined and lost more than 1%.
ITC lost around 1.7% on profit booking after yesterday's rally which saw its stock gaining around 4%.
BHEL down around 2.4% and Bharti Airtel down around 1.6% were other major losers.
Shares of non-banking finance companies (NBFCs) were in focus today after the Reserve Bank of India (RBI) came up with new and more rigorous regulatory framework for NBFCs.
Among individual stocks, Cholamandalam Investment and Finance Company, Mahindra and Mahindra Financial Services, L&T Finance Holdings and Shriram Transport Finance Company closed up 1-4%.
Among other shares, Jyothi Structures slumped around 11% after posting a net loss of Rs 69.37 crore in the July-September quarter of 2015 fiscal. In the same quarter last fiscal the company had reported a profit of Rs 14.63 crore .
Ucal Fuel Systems extended gains and surged 40% in two straight trading sessions. The stock zoomed 20%, to its 52-week high on the BSE, after reporting over four-fold jump in net profit at Rs 8.40 crore for the second quarter ended September 30, 2014 (Q2), on back of strong operational performance.
