 "Steel stocks shine in a firm market; Tata Steel up 2%")
After a weak opening, markets gathered pace during the session and closed firm on the back of favourable macroeconomic numbers with October industrial production up 9.8 per cent and wholesale prices falling for a 13th straight month in November quoting at -1.99 percent.
Provisionally, the S&P BSE Sensex climbed 111 points to end at 25,156 and the Nifty50 gained 50 points to close at 7,660.
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(updated at 3 pm)
After a weak opening, markets gathered pace on the back of favourable macroeconomic numbers with October industrial production up 9.8 per cent and wholesale prices falling for a 13th straight month in November quoting at -1.99 percent.
At 3 pm, the S&P BSE Sensex has gained 32 points at 25,076 and the Nifty50 has climbed 14 points at 7,625.
MACRO ECONOMIC DATA
The WPI data for the month of November stood at negative 1.99 against negative 3.81 for the month of October. This is the 13th consecutive month where the WPI has declined. The wholesale fuel prices dropped 11.09% from a year ago in November, while prices of manufactured goods declined 1.42% year on year.
Moreover, Industrial output grew by 9.8 per cent in October on the support of robust demand for manufactured products in the festival month compared to just 3.6 per cent in September.
However, anxiety continues to prevail at the D-Street ahead of the US Federal Reserve meet due later this week.
Meanwhile, rupee is trading over 2-year low of 67.09 against the US as greenback strengthened on prospects of a US Federal Reserve hike.
Also, oil prices sank to fresh seven-year lows with Brent below $39 a barrel for the first time since December 2008 after the IEA, warned that demand growth was starting to slow.
STOCKS IN FOCUS
Shares of steel companies are trading higher after the government imposed import duties for five years on some stainless steel imports from China, the European Union and the United States on Friday.
Among individual names, Jindal Stainless, Maharashtra Seamless and ISMT gained upto 10%. Meanwhile, JSW Steel and Tata Steel gained between 2%-4% on prospects that the import duty could be imposed on other categories of steel as well.
Other notable gainers from the metal pack include Hindalco and Vedanta up 2% and 1% each.
Drug maker Sun Pharma climbed 1% as its subsidiary Sun Laboratories is planning to hit the domestic bond market in order to raise up to Rs.1,000 crore to fund an internal restructuring.
IT major Infosys jumped 1.5% after the company invested $3 million in sport solutions start up “Whoop”. Whoop is an early-stage company offering a performance optimization system for professional sports teams.
Another prominent gainer in today’s trade is Maruti Suzuki rising 1.5% on talks that Japan will import cars manufactured in India by Maruti Suzuki.
On the flip side, TCS is trading lower by 1% after the company said that Chennai floods are expected to have a “material impact” on TCS’ current quarter revenues.
Meanwhile, carmakers continue to trade with losses following the NGT order barring registration of new diesel-powered vehicles in the capital. Tata Motors and M&M are trading down between 0.1%-2.5%.
Shares of two-wheeler companies including Bajaj Auto and Hero Motocorp have shed between 0.5%-1.3%.
Shares of oil exploration companies continue to trade weak on the back of slipping crude oil prices. ONGC and RIL have declined between 0.5%-2%.
