Mumbai: Expectations of a healthy economic growth rate and broadly positive global bourses on easing US-China trade tensions coupled with stock-specific buying pushed the Indian equity market higher on Tuesday. Additionally, hopes of further liquidity infusion into the Non Banking Financial Companies (NBFC) buoyed investor sentiments and broke the market’s range-bound movement.
Sentiments were also upbeat a day after the Central Statistics Office estimates showed that India’s GDP would grow 7.2 per cent in 2018-19, accelerating from 6.7 per cent growth in 2017-18.
However, caution ahead of the outcome of ongoing US-China trade talks and Q3 corporate earning session kept the major indices in a short range for most part of the trade on Tuesday. The third quarter earnings result season will start this week, with TCS set to announce its earnings on Thursday.
Consequently, the S&P BSE Sensex settled 130.77 points or 0.36 per cent higher at 35,980.93 points after it shuttled 280 points between a high of 36,037.35 and a low of 35,753.95.
The NSE Nifty50 closed 30.35 points or 0.28 per cent up at 10,802.15 points.
“Market traded on a range-bound with a positive bias in which PSU banks led the gains on account of improving NPA resolution along with capital infusion and depressed valuation,” said Vinod Nair, Head of Research, Geojit Financial Services. “Investors have some caution ahead of corporate earnings and a hope over ongoing US and China trade meeting.” The Indian rupee stood weaker by 52 paise at Rs 70.20 per dollar from its previous close of 69.68. On the other hand, Brent crude futures rose to around $58 per barrel.
“Technically, with the Nifty moving up further, traders will need to watch if the recent gains can sustain in the near term. Further upsides are likely once the immediate resistances of 10,836 are taken out,” said Deepak Jasani of HDFC Securities. “Crucial supports to watch for resumption of weakness is at 10,732.” Investment-wise, FIIs sold Rs 553.78 crore while DIIs bought stocks worth over Rs 698.17 crore on Tuesday.
Stock-wise, the top gainers on Sensex were Sun Pharma, State Bank of India, ICICI Bank, which gained over 3 per cent, while Tata Motors(DVR) and Yes Bank inched up in the range of 2 to 3 per cent. In contrast, Kotak Mahindra Bank lost 1.41 per cent and Bajaj Finance, HDFC Bank, Mahindra & Mahindra and Hindustan Uniliver declined up to 1 per cent. (IANS)
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