Sensex shrugs off weak Asia cues, ends 170 pts higher

Indian equity markets rose for the second straight day ending Tuesday, overcoming the correction in other Asian markets, as positive leads from European indices strengthened the mood even as investors across the globe await the outcome of the two-day US Fed meet on rate decision beginning later in the evening today. [caption id=“attachment_2546386” align=“alignleft” width=“380”]  Reuters[/caption] The 30-share BSE S&P Sensex ended firm at 25,320.44, up 170.09 points, or 0.7 percent from previous close. Intra-day, the index rose 193 points to touch the day’s high of 25,342.78 as old economy stocks were back in spotlight after the recent rout. The broader 50-stock CNX Nifty ended higher at 7,700.90, up 50.85 points, or 0.7 percent. Key European indices witnessed exemplary gains in their mid-day trades, surging over 1-2 percent while firm US stock futures, too, indicated a firm opening for key indices later in the day. However, other Asian market peers struggled with Japan’s Nikkei tumbling 1.7 percent while key Chinese gauges were down around 0.3 percent each. Market experts say the possibility of a first rate hike by the US Fed in nearly a decade is more or less getting discounted and the focus would once again shift on the global economic uncertainty and the subdued Chinese growth and its impact on the commodity markets. On the domestic front, the government facing an uphill task of passing the GST Bill in the winter session of parliament with few days left has been a major disappointing factor for investors. Market breadth ended positive with 1,596 stocks advancing against 1,053 declines on BSE. Among the major gainers, shares of Hindustan Unilever rose 2.6 percent to Rs 859, Lupin jumped 2.4 percent to Rs 1,789.90, Reliance Industries gained 2.2 percent to Rs 976.10, ONGC gained 2.1 percent to Rs 218 and Tata Motors was up around 2 percent at Rs 218. Others such as Bajaj Auto, HDFC, Maruti, HeroMoto Corp and ITC were over 0.5-1.6 percent each.