BSE Sensex edges higher on hopes of positive factory, inflation data

Jun 12 2014, 18:15 IST
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BSE Sensex rises 102.32 points to end at 25,576.21; NSE Nifty up 23.05 points to close at 7,649.90. (AP) BSE Sensex rises 102.32 points to end at 25,576.21; NSE Nifty up 23.05 points to close at 7,649.90. (AP)
SummaryBSE Sensex edged higher on Thursday as blue-chips such as HDFC Bank rose...

BSE Sensex edged higher on Thursday as blue-chips such as HDFC Bank rose on hopes that economic data due later in the day may show easing retail inflation and a pick-up in industrial activity.

A survey of economists found consumer price inflation probably eased to 8.4 percent in May, from April's three-month high of 8.59 percent as food prices fell slightly.

India's factory output probably rose for the first time in April since January, to reflect healthy growth in core industries, while consumer prices likely eased in May, a Reuters poll found.

However, investors expect some consolidation ahead of the new government's budget due to be unveiled by mid-July.

Also, overseas investors sold Indian shares worth 3.13 billion rupees ($52.87 million) on Wednesday, provisional exchange data shows, marking their first sales since May 29.

"We are now looking forward to the new government's execution of the budget. There is some consolidation happening. As more clarity comes there would be further upside though," said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance. The benchmark BSE index rose 0.4 percent, or 102.32 points, to end at 25,576.21.

The broader NSE index rose 0.3 percent, or 23.05 points, to end at 7,649.90.

Both the indexes have risen for five sessions out of the last six.

Among rate sensitive stocks, HDFC Bank rose 2.36 percent, while Tata Motors ended 0.85 percent higher. Domestic-oriented stocks also gained on continued hopes of reforms and economic revival by the newly elected Narendra Modi government.

Power Grid Corp of India rose 2 percent while NTPC rose 1.4 percent.

Fears of consolidation after record high levels touched on Wednesday drove some investors to stocks of pharmaceutical and IT companies.

Sun Pharmaceutical Industries rose 2.8 percent while Lupin gained 0.8 percent. Among software exporters, Tata Consultancy Services rose 1.4 percent while Wipro ended 0.8 percent higher.

However, Infosys Ltd fell 0.6 percent on profit taking after rising 6.9 percent over the previous two sessions. The

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