Sensex makes healthy gains; metal stocks zoom up (Roundup)

After positive sets of inflation and factory output numbers were released, a benchmark index of Indian equities markets gained 106.02 points or 0.38 percent in the trade Friday.

Healthy buying was observed in metal, banking, auto, oil and gas, and capital goods sectors, while selling pressure was seen in healthcare and fast moving consumer goods (FMCG) stocks.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 27,949.54 points, closed trading at a record high of 28,046.66 points, up 106.02 points or 0.38 percent from the previous day's close at 27,940.64 points.

The Sensex touched a high of 28,093.23 points and a low of 27,912.90 points in the intra-trade.

India's annual wholesale inflation rate dropped to its lowest level in five years, figures released Friday showed.

According to the data on official wholesale price index (WPI) released by the government, the inflation stood at 1.77 percent in October from 2.38 percent in the previous month and 7.24 percent for the like month of the previous year.

The annual food inflation actually declined by 1.3 percent due to a drop in the prices of fruits and vegetables, some lentils and coarse cereals. But prices of fish, eggs, mutton moved up.

On Wednesday, data showed that the country's factory output grew at 2.5 percent in September while retail inflation slipped to a record low of 5.52 percent during October.

These data have given hope to the market that the Reserve Bank of India may ease its key interest rates in its monetary policy review scheduled for December 2014.

"Sensex was range bound in today's trade. Metals outperformed while healthcare stocks were laggards," Sanjeev Zarbade, vice president - private client group research, Kotak Securities, said.

"Hindalco, Coal India, GAIL, SBI and Tata Steel were top gainers while Sun Pharma, Cipla, BHEL, DR Reddy's and HDFC were among the laggards. BHEL numbers missed the street estimates by a wide mark, though the stock reaction was muted," he said.

The S&P metal index gained 281.26 points, bankex went up by 143.29 points, auto index inched up by 115.72 points, oil and gas index rose by 113.85 points, and capital goods index moved up by 86.98 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed in the positive territory. It closed the trade 32.05 points or 0.38 percent up at 8,389.90 points.

The major Sensex gainers were: Hindalco, up 3.59 percent at Rs.157.40; Coal India, up 2.63 percent at Rs.356.50; State Bank of India (SBI), up 2.55 percent at Rs.2,788.45; GAIL, up 2.50 percent at Rs.489.10; and ONGC, up 2.05 percent at Rs.393.35.

The major Sensex losers were: Cipla, down 2.45 percent at Rs.608.85; Sun Pharma, down 2.43 percent at Rs.886.50; Dr Reddy's, down 1.27 percent at Rs.3,431.85; Hindustan Unilever, down 1.05 percent at Rs.757.25; and Tata Motors, down 0.47 percent at Rs.523.80.

Among other Asian markets, Japan's Nikkei index was up 0.56 percent and Hong Kong's Hang Seng gained 0.28 percent, while Shanghai's Composite Index slipped 0.26 percent.

In Europe, London's FTSE 100 was down 0.27 percent, while France's CAC 40 was lower by 0.41 percent, and Germany's DAX Index lost 0.53 percent.