For long the Indian markets were influenced by global cues. But for a change on Tuesday, despite all round gloom, the Indian markets chose to chalk out an independent path, with the Sensex sparkling with a gain of 387 points, largely riding on hopes of a rate cut and to benefit from falling inflation when most of the global indices were weak.
The 30-share BSE index Sensex spurted 387.131 points (2.11 per cent) at 18,744.93 and the 50-share NSE index Nifty was up 120.55 points (2.16 per cent) at 5,688.95.
The impact of this positive investor mood was reflected by two sectors-banking/home finance and automobile which are expected to benefit from any rate cut.
The star of the show was
In the banking and home finance space, HDFC and HDFC Ban k were both strong performers. While HDFC was up by Rs 29.75 at Rs 804.80, HDFC Bank jumped by Rs 20.75 at Rs 663.10 at the end of trading. ICICI Ban k was up by Rs 31.50 at Rs 1079.10 and SBI moved up by Rs 37.15 to close at Rs 2181.85.
In the capital goods space, L&T sizzled with a gain of Rs 44.60 to end the ay at Rs 1425.55. Reliance in comparison made a modest gain of Rs 10.95 to close at Rs 804.50.
It was Infosys that moved in the opposite direction, shedding Rs 46.05 to end at Rs 2,293. But TCS closed in the green at Rs 1484.85, a gain of Rs 9.45.
The significance of the Indian markets' contra show could be better appreciated when compared with the performance of the markets in the rest of the global following a plunge by Dow Jones Index in the US yesterday by about 265 points.
Most of the Asian markets, except Nikkei and Hang Seng which were in the red, were in the green but barely. And key European markets like FTSE, CAC and DAX were in the red.
While the performance of the Indian markets today did not mean that they have de-coupled from the rest of the globe, it was nonetheless welcome since domestic factors, rather than global cues, seemed to have influenced their behaviour.
Our Mumbai Bureau adds:
FIIs were net buyers of equity worth Rs 592 crore while DIIs offloaded equity in the net worth Rs 205 crore. Retail investors on the BSE also mirrored DII behaviour and sold net equity worth Rs 89 crore.
Lalit Thakker, Managing Director- Institution, Angel Broking said "The markets have taken cheer from the better-than-anticipated WPI inflation, which came in at a 40-month low. Inflation is a keystone parameter and improvement in the same can have cascading positives for the economy, leading to upsurge in cyclical and rate sensitive stocks. It has also raised expectations of a rate cut in the RBI’s next policy meet.”
Volatility was down two per cent and the volatility index India Vix closed at 16.25.
The advance - decline ratio of Nifty was 46:4.