Sensex gains over 100 points; Bajaj Auto, Axis Bank up 2%

Benchmark indices continue to maintain the upbeat trend led by consistent buying among auto and financial shares.

Rate-sensitive sectors like auto and banks are leading the gains on hopes that easing consumer inflation data for which is due later today, would help pave the way for lower interest rates. The CPI inflation data is expected later in the day.

Generating positive cues for the markets, a Reuters’ survey has estimated the consumer inflation rate for the month of October to cool down to 5.8% from 6.4% in the previous month due to a sharp fall in food and oil prices.

At 1300 hrs, the Sensex was up 148 points at 28,058 after hitting an intraday high of 28,126 whereas the Nifty was up 37 points at 8,400 after hitting an all time of 8,415.

The broader markets are performing in line with the benchmark indices- BSE Mid-cap and Small-cap indices have gained by nearly 1%.

The market breadth in BSE remains positive with 1,522 shares advancing and 1,225 shares declining.

Meanwhile, the provisional data released by the stock exchanges after trading hours on Tuesday showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 458.04 crore on that day.

The rupee is trading at 61.50 vs Tuesday's close of 61.55/56. Shares will be watched for clues on foreign fund flows.

GLOBAL MARKETS

Japanese stocks gained on Wednesday, as investors gave the thumbs-up to a media report that Prime Minister Shinzo Abe will delay a second sales tax hike to avoiding damaging Japan's economic recovery, and call a snap election to cement his position.

The Nikkei benchmark closed up 0.4% at 17,197.05, its highest since October 2007.

China stocks were mixed on Wednesday, dragged down by weak mainland banking shares as investors took profits after a big rally on Tuesday, but Hong Kong indexes edged up on continuing strength in offshore-listed Chinese financials.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 3.10 points, or 0.12%, to 2,555.51 at the end of the morning session, while the Shanghai Composite Index lost 7.51 points, or 0.3%, to 2,462.16.

SECTORS & STOCKS

Rate sensitive sectors like auto, banks and realty are leading the upmove, all gaining between 1-2%. However, BSE Power, Oil & Gas and Metal indices are trading marginally lower.

Bajaj Auto, Tata Motors, Hero Motocorp and Maruti Suzuki from auto sector are trading higher between 1-2.5% on the National Stock Exchange. NSE CNX Auto index hit a record high of 8,315.70 up by 1.6%.

SBI, HDFC Bank, ICICI Bank, Yes Bank, Kotak Mahindra Bank, Union Bank of India, Canara Bank, Indusind Bank and Axis Bank from banking are trading firm with gains between 1-2% each. Bank Nifty hit a record high of 17,617.60 up by 1.2%.

Consumer price inflation (CPI) to moderate to 5.7 per cent in January 2016, lower than the Reserve Bank of India’s (RBI’s) target of 6 per cent, UBS said in a report.

Other notable gainers are BHEL, Hindalco, Sesa Sterlite, TCS and Dr Reddy’s Labs, all surging between 1-2%.

On the losing side, Tata Steel is the top Sensex loser, down by over 1% ahead of its Q2 September 2014 results today.

Cipla, NTPC, Sun Pharma, Tata Power and HUL are other prominent losers in BSE.

Among other shares, HMT has surged by nearly 9% to Rs 41 after the company net loss narrowed by 38.5% in the quarter ended September 2014 at Rs 24.68 crore compared to Rs 40.12 crore in the year-ago period.

Aurobindo Pharma has gained around 4% to Rs 1,065 on BSE after its US subsidiary emerged as the highest bidder, with a bid of $132.5 million (approximately Rs 808 crore), for the acquisition of US-based nutritional supplement maker, Natrol Inc, and its other affiliate entities.

(With Reuters Input)