Lower inflation data coupled with revived global sentiment helped benchmark Sensex bounce back after yesterday’s steep fall and end 30 points higher at 27,673.60 in a choppy trade today, but gains were restricted by a mixed start of the earnings season.
Infosys stock fell 2.34 per cent even as the company reported a 6.1 per cent rise in its second quarter net profit but cut its annual revenue growth forecast for the second time in three months on an “uncertain business outlook”.
While, shares of country’s largest software exporter TCS today surged 1.61 per cent to Rs 2,365.90 after the company yesterday reported an 8.4 per cent rise in consolidated net profit at Rs 6,586 crore for the second quarter ended September 30.
Investor sentiment received a boost after retail inflation fell to a 13-month low of 4.31 per cent and wholesale inflation at 3.57 per cent, creating headroom for further rate cuts by Reserve Bank in coming months.
Besides positive domestic macro-economic data, a firming trend in global markets with upbeat Chinese inflation data easing investor concerns over global growth and the health of the world’s second-biggest economy influenced trading sentiment here.
“Market was not cheered even though the CPI inflation cooled to 4.31 per cent as the mixed start to the quarter results did not comfort investors. Global market rebounded with the positive inflation data from China, while the investors are eyeing today’s commentary from Fed chair for any cues in rate hike trajectory,” Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services, said.
The 30-share barometer opened positive at 27,712.22 and advanced to 27,763.54 but profit-booking at higher levels, shed most grounds to settle the session 30.49 points, or 0.11 per cent, higher at 27,673.60. Intra-day, it touched a low of 27,548.18.
The gauge had plunged 439.23 points in yesterday’s trade after a slew of global factors such as weak Chinese export data and Fed rate hike talks unnerved investors.
On similar lines, the NSE Nifty rose 10.05 points, or 0.12 per cent, at 8,583.40 after shuttling between 8,604.45 and 8,549.80.
However, for the week, the Sensex dropped 387.54 points, or 1.38 per cent, while NSE Nifty lost 114.20 points, or 1.31 per cent.
The broader markets today too saw some buying activity with the BSE small-cap advancing 0.83 per cent and mid-cap ending higher by 0.81 per cent.
As many as 16 in the 30-share Sensex pack advanced. GAIL was in the lead, rising 4.05 per cent, followed by L&T 2.51 per cent. Other movers that supported the key indices were Tata Motors, RIL, Power Grid, ONGC, Adani Ports, SBI, Cipla, Sun Pharma, NTPC and Axis Bank, gaining by up to 2.05 per cent.
Sectorwise, the BSE oil&gas index gained the most by surging 2.20 per cent, capital goods 1.56 per cent, infrastructure 1.48 per cent, PSU 0.85 per cent, realty 0.79 per cent and power 0.75 per cent.
Among the losers, besides Infosys, were HUL 2.32 per cent, HDFC 1.44 per cent, Lupin 1.09 per cent, M&M 0.88 per cent and Coal India 0.86 per cent.
Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth a net Rs 911.53 crore on yesterday, showed provisional data.
Shares at other Asian bourses ended higher and so did European bourses in their early session. Key indices in Hong Kong rose 0.88 while Japan’s Nikkei gained 0.46 per cent. Shanghai Composite rose 0.08 per cent.
Europe’s London FTSE up 0.58 per cent, Paris CAC 0.88 per cent and Frankfurt’s DAX 1.18 per cent in their early trade.