Sensex, Nifty open on positive note but pare early gains; Yes Bank cracks 4%, auto stocks lead gains

  • Sensex was down 0.07 percent or 27.40 points at 37,076.88 and Nifty below the 11,000-mark down 22.40 points or 0.2 percent at 10,960.40 at 10.30 AM

  • In the previous session, the BSE barometer settled 166.54 points, or 0.45% lower at 37,104.28, while the broader NSE Nifty fell 52.90 points, or 0.48% to close at 10,982.80.

  • On the currency front, the rupee appreciated 15 paise against its previous close to 70.98 in early session

BSE Sensex jumped over 100 points in early session on Friday, driven by gains in IT and auto stocks, amid positive domestic and global cues.

After touching a high of 37,244.34, the 30-share index pared most gains to trade 9.23 points, or 0.02 percent, higher at 37,113.51 at 0950 hours, while the broader Nifty slipped 4.95 points, or 0.04 percent, to 10,977.85. The Sensex was down 0.07 percent or 27.40 points at 37,076.88 and Nifty below the 11,000-mark down 22.40 points or 0.2 percent at 10,960.40 at 10.30 AM. In the previous session, the BSE barometer settled 166.54 points, or 0.45 percent, lower at 37,104.28, while the broader NSE Nifty fell 52.90 points, or 0.48 percent, to close at 10,982.80.

 Sensex, Nifty open on positive note but pare early gains; Yes Bank cracks 4%, auto stocks lead gains

Representational image. Reuters.

“Internationally, there is good news. Central banks are doing whatever they need to do to revive growth,” said Saurabh Jain, assistant vice-president of research at SMC Global Securities in New Delhi to Reuters. “People are hoping against hopes that government will take steps to help revive demand.”

Asian shares inched higher after the European Central Bank delivered bigger-than-expected stimulus on Thursday and US President Donald Trump did not rule out the possibility of an interim pact with China ahead of talks between senior trade negotiators in early October.

In domestic markets, the NSE auto index rose as much as 1.06 percent. The automobile sector is seeking a Goods and Services Tax (GST) cut to help revive demand for products. Markets await the outcome of the GST council’s 20 September meeting where it is expected to decide on the matter.

Top gainers in the Sensex pack on Friday included Infosys, TCS, Kotak Bank, Maruti, M&M, Tech Mahindra, HUL, HCL Tech, ITC and PowerGrid, rising up to 1.16 percent. On the other hand, Yes Bank, Bharti Airtel, SBI, L&T, HDFC Bank, Tata Steel and IndusInd Bank fell up to 4 percent.

Among the losers, the NSE public sector bank index, which tracks state-owned lenders, shed about 0.59 percent, with State Bank of India falling as much as 1.06 percent.

Traders told PTI, besides positive cues from global markets, domestic benchmarks rose amid hopes of another rate cut by the Reserve Bank of India (RBI).

Driven by costlier food items, retail inflation inched up to 10-month high of 3.21 percent in August but remained within the RBI's comfort level and may prompt the central bank for one more round of rate cut as another set of government data revealed industrial production growth slowed to 4.3 percent in July.

Buying by foreign portfolio investors (FPIs) also buoyed investor sentiment here, traders said.

On Thursday, FPIs bought shares worth a net of Rs 783.55 crore, while domestic institutional investors sold equities worth Rs 126.82 crore, provisional data showed.

Bourses in Hong Kong and Japan were trading in the green in their respective late morning sessions, while those exchanges on Wall Street too ended higher amid signs of easing trade-war tensions between the United States and China.

US President Donald Trump on Wednesday said he would delay hiking tariffs on some Chinese goods, just hours after Beijing announced it would remove a range of American products from its own planned levies.

Meanwhile, the European Central Bank announced a massive package of rate cuts and economic stimulus.

On the currency front, the rupee appreciated 15 paise against its previous close to 70.98 in early session.

Global oil benchmark Brent crude slipped 0.28 percent to 60.21 per barrel (intra-day).

--With inputs from agencies

 

Updated Date: Sep 13, 2019 10:51:12 IST