The Sensex rose on Tuesday for a second session of gains, led by rate-sensitive stocks such as ICICI Bank and Tata Motors, after headline inflation for July unexpectedly fell, boosting hopes for monetary easing by the RBI.
India’s wholesale inflation rose by a lower-than-expected 6.87 percent in July from a year ago, compared to the 7.25 percent gain in June.
India’s trade deficit widened to $15.5 billion in July, as exports recorded their sharpest fall since November 2011, reflecting a weakening of demand from key Western markets which has contributed to a slowdown in India.
Reuters
The Sensex provisionally ended up 0.56 percent at 17,731.59 points, while the Nifty rose 0.61 percent to 5,380.35 points.
Banking shares, surged on optimism, that Reserve Bank of India, with the given moderation of inflation, could prune its key policy rates in its upcoming mid-quarterly policy review on September 17, 2012. ICICI Bank rose 2.3 percent while Tata Motors rose 3.3 percent.
Housing Development & Infrastructure (HDIL) slipped over two percent on reporting 40.94% drop in Q1FY13 net profit at Rs 123.47 crore for the June quarter as compared to a net profit of Rs 209.06 crore for the same quarter.
Meanwhile, world’s largest aluminum rolling company, Hindalco Industries, also slipped over half a percent on reporting 34.04% slippage in net profit at Rs 424.77 crore for the
Tata Motors, Ranbaxy, IDFC, Tata Steel, Axis Bank, ICICI Bank, Jindal Steel, JP Associates, Coal India and PNB were among the notable leaders in the Sensex and the Nifty.
Sun Pharma, HDFC, Hindalco, Sterlite Industries, BPCL, Sesa Goa, Bajaj Auto and Siemens were the top laggards in the Sensex and the Nifty.
The European stock indices were also trading with a positive bias after Germany posted modest economic growth in the second quarter of the year while the French economy stagnated.
Europe’s largest economy managed to notch up GDP growth of 0.3% over the previous quarter, marginally beating forecasts.
For France, it was the third consecutive quarter of zero growth.
