The BSE Sensex today gained 35 points in a volatile trade while the NSE Nifty settled at record closing high of 8,362.65 points on continued foreign funds inflows ahead of inflation and IIP data tomorrow.
The 50-share Nifty continued its record-setting run for the second straight session and ended up by 18.40 points, or 0.22 per cent, at all time high of 8,362.65. It shuttled between 8,378.70 and 8,321.85 in day trade.
The BSE barometer Sensex opened on a strong footing and rose to intra-day high of 27,996.92.
But later it succumbed to profit-booking at near record levels and touched a low of 27,790.40 before settling at 27,910.06, a gain of 35.33 points, or 0.13 per cent, over previous close. The 30-share index had closed at record high of 27,915.88 on November 5.
A positive momentum after government’s reforms process and a firming trend at global markets buoyed the trading sentiment, brokers said. Global crude prices dropping to four-year low also helped the positive momentum, they added.
Brent crude for the December delivery eased 22 cents to four-year low of USD 82.12.
Foreign portfolio investors bought shares worth Rs 355.30 crore yesterday, according to the stock exchanges’ data.
However, profit-booking at some counters ahead of inflation data for October and IIP numbers for September to be released tomorrow, slowed down the rally to some extent.
On the other hand, Infosys, ITC Ltd, Bharti Airtel, BHEL, Coal India, Dr Reddy’s, Hero MotoCorp, Wipro and Sesa Sterlite finished lower.
Sectorwide, the BSE Realty index gained the most by rising 1.05 per cent, followed by Banking index by 0.74 per cent and Auto index by 0.68 per cent.
Indian shares edge higher ahead of key retail inflation data
(Reuters) Indian shares edged higher on Tuesday as rate-sensitive stocks such as ICICI Bank rose on hopes lower retail inflation data would lead to early interest rate cuts, although profit-taking prevented the indexes from hitting further record highs.
Meanwhile, non-banking finance companies like Housing Development Finance Corporation also rose after the central bank unveiled rules on bad loans and capital requirements that came largely along expected lines.
Traders say volumes will remain muted until India releases data on Wednesday on retail inflation, which is expected to slow to a record low of 5.80 percent in October, according to a Reuters poll.
That is expected to intensify calls for an interest rate cut by the Reserve Bank of India at its next policy review on Dec. 2.
“Market is discounting a fall in inflation and a resultant decrease in interest rates,” said Deven Choksey, managing director at K R Choksey Securities.
The benchmark BSE index rose 0.13 percent to end at 27,910.06. The broader NSE index rose 0.22 percent to end at 8,362.65, also marking a record closing high.
Rate-sensitive stocks led the gains on hopes lower retail inflation data would enable the central bank to go for early rate cuts.
ICICI Bank ended up 1.6 percent while HDFC Bank gained 0.4 percent.
Among state-run banks, Bank of Baroda rose 2.7 percent while Punjab National Bank advanced 3.4 percent.
Some auto stocks gained with Mahindra and Mahindra rising 2.4 percent while Larsen and Toubro gained 1.1 percent.
Non-banking finance companies also rose. India raised the minimum capital requirement for so-called shadow banks and tightened rules on deposits and bad loans on Monday, but the rules were largely within expectations.
Housing Development Finance Corporation gained 1.2 percent, while IDFC ended 2.7 percent higher.
Shriram Transport gained 4.9 percent, Mahindra and Mahindra Financial Services rose 1.1 percent.
However, among decliners, Jet Airways fell 2.5 percent on profit-taking after Monday’s 6.9 percent surge after September-quarter results.