BSE Sensex up 123 pts in early trade; RIL surges 1.48 pc

Written by Reuters | Updated: Oct 14 2014, 16:00pm hrs
Sensex and niftyTraders say retail inflation falling to record low in September may prompt RBI to cut rates earlier than expected. (Reuters)
The benchmark BSE Sensex rose over 123 points in early trade today after sentiments buoyed on the back of strong second quarter earnings posted by RIL and easing retail inflation that dropped to 6.46 per cent in September.

Besides, a mixed trend in other Asian markets also influenced the trading sentiment here.

The 30-share index rose by 123.18 points, or 0.47 per cent, to 26,507.25, with stocks of oil and gas, banking, PSU and power sectors leading the rise. The gauge had gained 86.69 points in yesterday's volatile session.

Similarly, the National Stock Exchange index Nifty edged higher by 21.50 points, or 0.27 per cent, to 7,905.75.

Shares of RIL rallied by 1.48 per cent to Rs 972 in early trade after company posted 1.7 per cent rise in its second quarter net profit to Rs 5,972 crore.

Meanwhile, the retail inflation dropped to 6.46 per cent in September on falling prices of fruits and vegetables, the lowest since India started computing Consumer Price Index (CPI) in January 2012.

The retail inflation was at 7.73 per cent in August, revised downward from the earlier estimate of 7.8 per cent.

Bucking the trend, stocks of DLF plunged by 20.48 per cent, its biggest single-session fall since September 2013 after the market regulator SEBI barred the company from tapping the capital markets for three years for "active and deliberate suppression" of material information at the time of its IPO.

Among other Asian markets, Japan's Nikkei fell 1.72 per cent while Hong Kong's Hang Seng gained 0.34 per cent in morning trade today.

The US Dow Jones Industrial Average ended 1.35 per cent lower in yesterday's trade.