Sensex, Nifty at new closing highs, rate cut hopes buoy sentiments (Roundup)

Mumbai, July 31 (IANS) Key Indian equity indices closed at new highs on Monday cheered by hopes of a rate cut in the upcoming monetary policy review of the Reserve Bank of India (RBI), coupled with expectations of healthy quarterly results.

Investors’ sentiments were also buoyed by broadly positive global cues and intense buying activities in banking, consumer durables and capital goods stocks.

The wider Nifty50 of the National Stock Exchange (NSE) rose by 62.60 points or 0.63 per cent to close at a new high of 10,077.10 points.

The 30-scrip Sensitive Index (Sensex) of the BSE closed at a fresh high of 32,514.94 points — up 205.06 points or 0.63 per cent, from its previous close of 32,309.88 points.

The Sensex touched a high of 32,546.50 points and a low of 32,324.45 points during intra-day trade.

However, the BSE market breadth was bearish with 1,429 declines and 1,266 advances.

In terms of the broader markets, the S&P BSE mid-cap index was up 0.39 per cent and the small-cap index by 0.14 per cent.

“Markets began the week on a positive note as it rallied on Monday after opening on a positive note. Sentiment was positive on expectations that RBI could cut rates in its meet scheduled later this week on August 2, 2017,” Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.

“Positive global cues also supported the Indian indices. Major Asian markets have ended on a positive note, barring the Nikkei and Straits indices. European indices like FTSE 100 and DAX traded higher,” he added.

On the currency front, the rupee weakened by three paise to 64.18-19 to a US dollar from its previous close at 64.15-16.

In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 1,196.94 crore, while domestic institutional investors (DIIs) purchased stocks worth Rs 1,768.43 crore.

“The markets continued trading with gains in the afternoon trade on Monday after the country’s biggest lender, State Bank of India (SBI), rallied as it introduced a two-tier savings bank interest rate while investors awaited a rate-cut by the RBI in its two-day policy meeting which begins on Tuesday,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

“Iron ore producers NMDC and Vedanta’s shares gained up to 4.5 per cent intra-day after the rally in iron ore futures. Economists are divided on what action the RBI will take in its policy review that concludes on Wednesday,” Desai added.

Sector-wise, the S&P BSE banking index surged by 365.06 points, the consumer durables index by 301.46 points, and the capital goods index by 248.08 points.

On the other hand, the S&P BSE healthcare index declined by 218.76 points, the FMCG index by 101.31 points and the telecom index was a tad down by 1.15 points.

Major Sensex gainers on Monday were: SBI, up 4.46 per cent at Rs 312.55; Power Grid, up 4.23 per cent at Rs 223.05; Tata Steel, up 2.89 per cent at Rs 567.55; Larsen and Toubro, up 2.85 per cent at Rs 1,192.10; and ONGC, up 2.82 per cent at Rs 169.35.

Major Sensex losers were: Sun Pharma, down 3.47 per cent at Rs 531.70; Dr. Reddy’s Lab, down 3.11 per cent at Rs 2,385.50; Lupin, down 2.90 per cent at Rs 1,032; ITC, down 2.09 per cent at Rs 285.15; and Cipla, down 1.18 per cent at Rs 558.65.

–IANS

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