Sensex up for 2nd day; bank, auto stocks rise on rate cut hope

The BSE benchmark Sensex today rose 46 points to 21,251.12 to end the day higher for the second day in succession on buying in banking, auto and metal shares in view of sustained foreign capital inflows and positive global cues.
Interest rate sensitive banking and auto scrips gained on the hope that the Reserve Bank of India will cut key rates in its monetary policy meeting on January 28 following retail and headline inflation softening.
Metal stocks Hindustan Zinc and Sesa Sterlite hit 52-week high after Commerce Minister and Industry Anand Sharma said yesterday that Union Cabinet approved selling government's residual stake in Hindustan Zinc.

The Sensex moved in a narrow range between 21,302.52 and 21,189.20 before ending at 21,251.12, a gain of 46.07 points from its previous close.
Yesterday, it had gained 141.43 points.
The NSE 50-share Nifty rose 9.85 points to 6,313.80.

As per provisional data from stock exchanges, FIIs bought shares worth a net Rs 384.89 crore yesterday.
Major Sensex gainers were ICICI Bank at 3.32 per cent, Tata Motors 2.68 per cent, Tata Steel 2.39 per cent, Axis Bank 2.37 per cent, Sesa Sterlite 1.56 per cent.
Maruti Suzuki was up 1.40 per cent, Larsen 1.13 per cent, SBI 1.07 per cent, HDFC Bank 1.03 per cent.

TCS dropped by 2.46 per cent, Coal India 2.45 per cent BHEL 1.90 per cent, Gail India 1.59 per cent, Sun Pharma 1.43 per cent and Bharti Airtel 1.21 per cent.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said: "Indian equity markets traded range bound for the better part of the day. There were some negative rallies seen in IT stocks, which put pressure on markets...."
"In the absence of fresh triggers to guide the movement on the either sides, markets are relying on the results declared by the corporate to gauge the direction. Rallies in the bank, auto and metal stocks helped the markets to end on a positive note.