Easing retail inflation relieves mkts
Mumbai: Equity indices resumed their climb on Tuesday after a day's pause following gains in IT, bank and engineering stocks amid a muted trend overseas.
The 30-share BSE Sensex ended 69.33 points or 0.12 per cent higher at 58,247.09. The broader NSE Nifty advanced 24.70 points or 0.14 per cent to its fresh closing record of 17,380.
"Despite a bullish opening, domestic indices closed flat with a positive bias amid mixed sentiments among global peers. India's retail inflation softened to 5.3 per cent in August, staying within RBI's comfort zone, which was led by lower food inflation. However, the wholesale price inflation accelerated to 11.39 per cent, snapping the two-month easing trend owing to non-food articles. Global markets traded cautiously ahead of the US consumer price index to be released today," said Vinod Nair, head (research) at Geojit Financial Services.
Ajit Mishra, V-P (research) at Religare Broking Ltd, said, "the markets remained in consolidation mode. Though the index has been holding at higher levels, it would be difficult to regain momentum without the banking pack, which is still signaling a mixed trend. Amid all, we reiterate our view to continue with a positive yet cautious approach until we see any sign of trend reversal."
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 1,419.31 crore on Monday, as per provisional exchange data.
IndusInd Bank topped the Sensex gainers chart with a jump of 4.07 per cent, followed by HCL Tech, Kotak Bank, Bajaj Auto, Tech Mahindra, L&T, Titan and TCS. In contrast, HDFC, Nestle India, UltraTech Cement, HUL, Tata Steel, Bajaj Finserv and Bajaj Finance were among the prominent laggards, shedding up to 1.07 per cent.
Sectorally, BSE utilities, consumer discretionary goods, auto, teck and consumer durables rose as much as 1.64 per cent, while metal, FMCG, energy and basic materials finished lower. In the broader markets, the BSE midcap and smallcap indices outperformed the benchmarks, spurting up to 1.09 per cent.