Key indices inch up in sluggish trading
Markets close higher for 2nd day; Power, metal shares lead gains; Despite buoyancy in global markets, domestic bourses moved in restricted range
Mumbai Benchmark stock indices Sensex and Nifty closed higher on Tuesday, marking their second straight day of gains as metal and power and select financial shares advanced. Losses in index majors Reliance Industries, ICICI Bank and Airtel, and foreign fund outflows restricted gains, analysts said. Rising for a second straight day, the BSE Sensex rose by 79.22 points or 0.12 per cent to settle at 65,075.82, tracking firm global markets. During the day, it jumped 232.43 points or 0.35 per cent to 65,229.03. The NSE Nifty gained 36.60 points or 0.19 per cent to end at 19,342.65.
“The buoyancy of the global market in anticipation of no further Fed rate hikes, due to subdued economic data, was noticeable in the Indian market as well. However, heavyweight stocks were muted compared to the sector-wise and mid & small-cap upsides. The metals sector rallied in anticipation of further green shoots from the Chinese government and central banks, aimed at improving the local economy, he said adding the “benefits from festival demand were evident in sectors such as consumer durables, manufacturing, power, and real estate,” said Vinod Nair, head (research) at Geojit Financial Services.
“Currently, there are no fresh positive triggers to recharge the markets. Hence, investors are preferring to take selective bets. Also, FIIs taking out money from local shares has prompted traders to stay cautious,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs1,393.25 crore, according to exchange data.
In the broader market, the BSE smallcap gauge climbed 0.69 per cent and midcap index gained 0.45 per cent. Among the indices, commodities jumped 1.73 per cent, realty gained 1.61 per cent, utilities climbed 1.15 per cent, metal (1.12 per cent), power (1.10 per cent) and consumer discretionary (0.79 per cent). FMCG, telecommunication and bankex were the laggards.