Sensex ends (provisional) at 19,779 - up 88 points. Nifty ends up 33 points at 5,939.
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(Updated at 1434 hrs)
Markets to end in the green on back of positive sentiment bolstered by monthly Inflation data and rally in consumer durables and metal stocks.
Inflation eased to 7.48% in November indicating that central bank may pause rate hike on Thursday, and focus on easing the cash crunch.
Sensex made modest gains in the opening trade and swung 194 points between a high of 19,815 and low 19,621. The Sensex has settled in the green after the Inflation number, at 19,758, up 67 points. The S&P CNX Nifty has surged 19 points to 5926.
With Inflation declining marginally, analysts expect some policy action on Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio front. "Inflation in India is primarily a supply side issue. I feel that there may not be a rate hike in this policy. However, the RBI may tweak Statutory Liquidity Ratio (SLR) and cut Cash Reserve Ratio (CRR) because of tight liquidity conditions and advance tax pay-out," Gopal Agrawal, Head of Equities, Mirae Asset India said.
Asian markets are also creeped higher amid cautious trading. China's Shanghai Composite Index rose 0.1%, Hong Kong's Hang Seng Index gained 0.5%, Japan's Nikkei Stock Average was flat, South Korea's Seoul Composite was up 0.6%
Metal stocks have been on the buzzer for the second consecutive day on steel price hike buzz and Manganese Ore India Limited (MOIL) listing tommorow. Additionally, Copper prices have risen globally which has also perked up buying interest in the metals after China refrained from raising interest rates. From the metal space, Sterlite has risen 3.4%, Tata Steel has climbed 2.4% and Hindalco has zoomed 1.8%.
Aanalysts are positive on commodity markets in the short-run. "Near term outlook is positive on back of severe winter, QE-II and global recovery. If recovery in US sustains at these levels, it will be positive for commodities," Agrawal said.
Consumers Durables have been buzzing on upbeat holiday season. Gitanjali Gems led the rally, up 7%, followed by VIP Industries (up 4.5%),
and Rajesh Exports (up 3.6%)
The broader markets are also trading firm. The mid-cap and small-cap indices have risen over 1.5% each.
On the Sensex, Reliance Infra has advanced 2.3%, Tata Motors has gained 2.3% and Reliance Industries has added 1.5%. Among the losers, Hero Honda lost 3.2%, Jindal Steel is off 1.4% and Mahindra and Mahindra has declined 1.3%.
