Sensex rises 119 points to end above 29,000; ECB decision awaited

Investors have turned cautious ahead of the European Central Bank monetary policy decision later in the global day

Benchmark indices ended near day’s high amid choppy trades as investors across the globe have turned cautious ahead of the European Central Bank (ECB)'s monetary policy decision later in the global day.

The S&P BSE Sensex closed higher by 119 points at 29,045 and the Nifty50 inched up 35 points to end at 8,953. In the broader market, the BSE Midcap and Smallcap indices were up 0.2%-1%.

Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services said, “ Indices’ surge was held back for a second day, as IT behemoths slipped on TCS’ warning. However, value buying remained visible arresting declines, while Siam’s upward revision of growth also kept auto stocks firm. Meanwhile, ECB’s meet scheduled later in the day ensured that risk appetite was reined in."

Asian shares held within one-year peaks on Thursday as Chinese trade data topped forecasts and imports recorded their first annual rise since late 2014, a promising sign for global demand that gave the Australia dollar a lift.

Beijing reported imports rose 1.5% in August from a year ago, confounding forecasts of a 4.9% drop, while exports from the Asian giant dipped 2.8%.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1%, but that followed four days of gains which took it to the highest since July last year.

South Korean stocks lost 0.3%, having also touched a one-year top this week, while Shanghai turned a fraction firmer. Japan's Nikkei lost 0.3%, easing away from a three-month top in the face of a firm yen.

The main event later on Thursday will be the European Central Bank's regular policy meeting. Nearly all analysts polled by Reuters expect rates to remain unchanged on Thursday, though there was more uncertainty on whether the ECB would announce an extension of its 80 billion euro of monthly asset buys.

Back home, country's largest car maker Maruti Suzuki may look at splitting the stock following the recent sharp run in prices. The stock gained by almost 3%.

Shares of 10 IT companies fell upto 6% after TCS warned there could be sequential loss of momentum as its clients may hold back discretionary spending in banking, financial services and insurance segment in the US. TCS, Wipro and Infosys declined between 2%-6%.

Eight metal and mining stocks spurted upto 5% after the latest Chinese trade data topped forecasts and imports recorded their first annual rise since late 2014. Tata Steel, NALCO, SAIL and JSPL gained between 2%-5%.

GAIL (India) slipped 2% despite net profit jumped 244.03% to Rs 1335.18 crore on 9.98% decline in total income to Rs 11457.20 crore in Q1 June 2016 over Q1 June 2015.

Bharat Heavy Electricals (BHEL) lost around 2%, with the stock sliding on profit booking after yesterday's sharp rally triggered by the company announcing strong Q1 earning.

Among other shares, IRB Infrastructure Developers rose 9% on BSE after an investment trust backed by the company filed a draft offer document with the market regulator for an initial public offer.

YES Bank fell over 5% after the company launched a qualified institutional placement of shares to raise funds worth $1 billion.


With Reuters & Capital Market inputs