Sensex, Nifty close at record highs, beating inflation blues; RIL, IndusInd bank among top losers

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Updated: January 14, 2020 4:23:53 PM

S&P BSE Sensex ticked up 92.94 points or 0.22 per cent to close at 41,952.63 levels, while broader Nifty 50 index ended at 12,362 levels, up 32.75 points or 0.27 per cent.

SENSEX, nifty, nse, bse, stock, shares, SBI, Hero MotoCorp, IndusInd Bank, RIL, inflation, wpi, cpi, share marketS&P BSE Sensex ticked up 92.94 points or 0.22 per cent to close at 41,952.63 levels.

Benchmark stock market indices Sensex and Nifty ended at record close levels for the second consecutive session on Tuesday, at the end of an otherwise range-bound session. The market was gripped by pessimism around high inflation for most of the trading session, but later shirked it off on reports of duty structure reforms in the upcoming Budget, an equity research analyst said. “Later in the session, the traders were seen taking support from the report that the government is expected to address the issue of inverted duty structure, especially in sectors such as chemicals and electronics, in the forthcoming Budget,” Narendra Solanki, Head of Fundamental Research – Investment Services, Anand Rathi Shares & Stock Brokers.

Return of Mid-Cap, Small-Cap Stocks

The market sentiment was also lifted by the investors returning to buy mid- and small-cap stocks. “Overall, the broader markets continued its positive sentiments with investors seems to have started betting big on mid and small cap stocks which was missing last year,” Narendra Solanki added. S&P BSE Sensex ticked up 92.94 points or 0.22 per cent to close at 41,952.63 levels, while broader Nifty 50 index ended at 12,362 levels, up 32.75 points or 0.27 per cent.

IndusInd Bank was the top laggard in Sensex pack, down 4.03 per cent, followed by Reliance Industries (RIL), Kotak Bank and State Bank of India (SBI) each down nearly 1 per cent. Conversely, Hero MotoCorp, ITC, Mahindra and Mahindra (M&M), Tech Mahindra, Nestle India, Axis Bank, NTPC were the top gainers on the index.

S&P BSE Sensex scaled its fresh lifetime high of 41,994.26 levels, while broader Nifty 50 index surpassed the psychological level of 12,350 for the first time ever and touched the 12,374 level in Tuesday’s trade. Among Nifty sectoral indices, Nifty Bank (down 0.33 per cent), Nifty PSU Bank (down 0.26 per cent), Nifty Private Bank (down 0.47 per cent) and Nifty Realty (down 0.13 per cent) settled lower. While Nifty Auto, Nifty Financial Service, Nifty FMCG, Nifty IT, Nifty Metal and Nifty Pharma ended in green.

In the broader market, the S&P BSE MidCap index ended 115 points, or 0.75 per cent higher at 15,405 levels, and the S&P BSE SmallCap index settled at 14,383.71 levels, up 102 points, or 0.71 per cent.

Inflation Spooks

According to the data released by the government on Tuesday, wholesale prices in India have risen to a 7-month high in December at 2.59 per cent, compared to 0.58 per cent for the previous month, owing to high food prices. The WPI Food Index inflation increased from 9.02 per cent in November to 11.05 per cent in December 2019. WPI inflation in the prices of onion remained highest at 455 per cent. Meanwhile, CPI touched a 5-year high in December on the account of retail prices of vegetables which shot up as high as 60 per cent. “The markets traded mostly flat with marginal gains as broader sentiments remained mixed with higher than expected inflation numbers released yesterday appeared to have spooked traders in the morning session,” Narendra Solanki said.

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