Expected improvement in macros, fund inflows lift equities; IT stocks rise (Roundup)
Mumbai : Expected improvement in India's economic-macros due to falling crude oil prices aided the Indian equity market indices to advance for a second straight session on Tuesday.
Additionally, inflows of foreign funds which boosted the domestic currency gave further upside to the market trajectory.
However, during the intra-day session, market indices remained range bound but bounced-back sharply during the late trade hours.
Consequently, the S&P BSE Sensex settled up 159.06 points or 0.45 per cent at 35,513.14 points, from its previous close of 35,354.08 points.
It touched an intra-day high of 35,555.16 and a low of 35,262.97.
Similarly, the NSE Nifty 50 made gains. It rose 57 points or 0.54 per cent to end the day's trade at 10,685.60.
"Market smartly recovered from day's low amid global trade tensions ahead of G20 meet this week and mixed Asian peers," said Vinod Nair, Head of Research, Geojit Financial Services.
"Risk element on inflation is subsiding with rise in oil production, strong rupee and drop in yield, CPI inflation is expected to be under the control range. IT outperformed due to favourable valuation while ease in liquidity concern on PSU banks supported the sentiment."
In contrast, the overall market breadth on the BSE was negative, with 1,222 stocks advancing and 1,350 declining.
"While markets traded in the positive zone, investors were a bit cautious ahead of the expiry of futures and options (F&O) contracts on Thursday (November 29) and the release of India's gross domestic product data for the September quarter on Friday (November 30)," said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
Sector-wise, while the healthcare, metals and media indices closed in the red, sharp gains were seen in the PSU bank and information technology indices.
The Nifty PSU Bank index gained 1.15 per cent after the Centre on Monday announced it would pump Rs 42,000 crore into the debt-laden banks by March.
Currently, 11 of the 21 state-run banks are under the central bank's Prompt Corrective Action (PCA) framework, restricting their ability to lend and expand branches. The move is expected to provide them a leeway out of the PCA framework.
In terms of crude oil, prices remained subdued at $60.24 per barrel at the time markets closed here, while the Indian rupee ended at Rs 70.76 per US dollar from its previous close of 70.87.
On investments, provisional data with the exchanges showed that foreign institutional investors bought stocks worth Rs 811.52 crore on Tuesday while the domestic institutional investors bought shares worth Rs 31.21 crore.
"Technically, with the Nifty rallying higher and breaking out of the recent trading range, the bulls seem to be in control," said Deepak Jasani, Retail Research Head, HDFC Securities.
"Further upsides are likely once the immediate resistances of 10,695 points are taken out. Crucial supports to watch for any weakness are at 10,596 points."
Top gainers on the Sensex were Infosys, up 2.53 per cent at Rs 637; Tata Consultancy Services, up 2.29 per cent at Rs 1,888.35; Reliance Industries, up 1.61 per cent at Rs 1,127.50; IndusInd Bank, up 1.29 per cent at Rs 1,584.45 and Maruti Suzuki, up 1.27 per cent at Rs 7,629.60.
The laggards were Sun Pharma, down 3.34 per cent at Rs 493.60; HeroMoto Corp, down 3.10 per cent at Rs 2,967.20; Yes Bank, down 2.55 per cent at Rs 183.15; Wipro, down 2.18 per cent at Rs 311.90, and Bajaj Auto, down 2.01 per cent at Rs 2,598.60 per share.