Despite WPI at 14-month high, Sensex up 100 pts; ICICI leads

The market bounced back on Tuesday with the Sensex gaining more than 100 points, tracking positive global cues. It is after the weakness seen in previous five consecutive sessions.

The Sensex rose110.29 points or 0.53 percent to 20,769.81, and the Nifty climbed 28.20 points or 0.46 percent to 6,182.90

The rupee is trading lower at 61.93 per dollar vs previous close of 61.73/74; a hike in rates by the RBI tomorrow will have a negative impact on the rupee.

[caption id=“attachment_1268411” align=“alignright” width=“380”]  Reuters[/caption]

Asian markets joined the global rally as investors cheered upbeat economic data one day before the start of the two-day Federal Reservemeet.

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A spike in the headline WPI inflation rate to 7.52 percent and the record high November consumer price inflation may spur RBI to raise interest rates for the third time in four months tomorrow.

Stocks in news:

ICICI Bank, TCS, Larsen and Toubro, Bharti Airtel, Cipla, Maruti Suzuki, Sun Pharma, Sesa Sterlite and Dr Reddy’s Labs gained 1-2 percent.

However, HDFC Bank lost more than 2 percent after the Reserve Bank of India barred buying by foreign institutional investors (FIIs) in shares of the country’s second largest private sector lender as FIIs shareholding limit reached.

Coal India too slipped 2 percent after the board of directors on Monday deferred any decision on the buyback or special dividend. CMD S Narsing Rao told CNBC-TV18 that a decision on the special dividend will be taken closer to February.

The state-run coal mining company’s board has raised prices of coal produced from Western Coalfields by an average of 10 percent across all grades.

Shares of Apollo Tyres gained 8 percent as reports suggest that the Delaware Supreme Court has dismissed Cooper Tire’s appeal on merger with Apollo Tyres. Cooper Tire had appealed against Apollo’s plea for a price cut. This move puts the deal back in the hands of a Lower State Court. Remember, Cooper Tire needs to get a favoured ruling by December 31 for the merger to go through.