Sensex, Nifty end nearly 1% higher on firm macroeconomic data

Markets snapped two straight session of losses as the buying activity picked up on the back of favourable macroecomic numbers with the industrial production expanding at a better-than-estimated 4.2 % in July and the wholesale price index-based inflation plunging to a historic low of (-)4.95% in August creating a room for the RBI for a rate cut in the next monetary policy.

Provisionally, the Sensex closed 225 points higher at 25,836 and the Nifty surged 77 points to end at 7,867

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(updated at 3:30 PM)

Benchmark indices have extended gains and are trading near day’s high on the back of buying demand among financials, metal realty and power sectors.

At 15:05 PM, the Sensex was trading at 25,866 up 256 points and the Nifty gained 68 points at 7,869.

The top gainers from the Sensex pack are NTPC, Tata Steel, Axis Bank, Wipro and GAIL, all surging between 2-3%.


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Updated at 12 Noon

Markets continue to trade in the positive terrain on the back of good IIP numbers. However, caution prevailed on the bourses ahead of the inflation numbers, which will be announced today.

At 12 noon, the Sensex was trading at 25,706 up 95 points and the Nifty gained 26 points at 7,816.

The broader markets are however outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 1%.

Market breadth on the BSE remains positive with 1,440 shares advancing and 763 shares declining.

Meanwhile, the market participants across the globe will be have their eyes set at the Fed FOMC meet where the US Fed Chair is expected to raise the interest rates for the first time in eight years.

On the currency front, the rupee has recovered 14 paise to 66.40 against the dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks amid positive economic data.

MACRO-ECONOMIC DATA

Wholesale price index for the month of August has contracted further to 4.95%

The government is scheduled to unveil the consumer price index (CPI) data for the month of August 2015 after market hours today.

The IIP numbers that were announced on Friday post market hours showed that the industrial output grew at 4.2% in July thus indicating a revival in Indian economy.

SECTORS & STOCKS

BSE Metal, Power and Realty are rallying over 1% followed by BSE Bankex, up nearly 1%. Currently no sector is in the negative zone.

Metal pack is in green with 1.1% gains. JSWSteel, Tata Steel, Hindalco, Vedanta are all up between 0.7-3% each.

On the back of improved IIP numbers, LT and BHEL have gained on the Sensex. BHEL is trading flat while L&T is up by 0.2%

Banking and Financial shares are rallying ahead of inflation numbers. The inflation is expected to have cooled down further thus raising hopes of a rate cut by the central bank. SBI, Axis Bank, ICICI Bank, and Yes Bank, are all up between 1-2%

On the flip side, index heavyweights Reliance Industries and HDFC are under pressure. Reliance Industries is down by 0.7% while HDFC has slipped 0.4% on the Sensex.

SMART MOVERS

Just Dial has zoomed 12% on the BSE after the company announced that it has launched its latest Android App on the Google Play Store for users.

Venkys (India) has surged 12% on the BSE after the board has recommended the issue of bonus shares in the ratio of 1:2 i.e. one bonus equity share for every two equity shares each held.

Kesoram Industries has rallied 4% on the BSE in the early morning trades after the company on Saturday announced that it will sell its tyre business at Haridwar to JK Tyre & Industries and JK Asia Pacific Singapore Pte Ltd. for Rs 2,195 crore.