Indian stocks moved higher Tuesday, recording an eighth consecutive gaining session. The BSE Sensex moved up 0.27 per cent to 27,804.37, while the NSE Nifty gained 0.34 per cent per cent to end the day at 8,381.55.
The Indian markets rose in tandem with global markets, which were a sea of green as investors looked forward to a resolution of the debt crisis negotiations between Greece and its creditors, now that the heavily indebted country had suggested reform proposals.
Domestically, the Indian government may recapitalise state-owned banks with about $3 billion (£1.9 billion) this year and another $6 billion next year in an effort to bolster their capital adequacy and to comply with Basel III rules.
Investors were also encouraged by better prospects for the Indian monsoon, a critical factor for the country’s huge agrarian sector.
Gainers and losers
The major Nifty sector gainers were mining and minerals (+2.69 per cent), cement-major (+2.17 per cent), auto ancillaries (+1.37 per cent), cigarettes (+1.34 per cent) and auto-cars and jeeps (+1.24 per cent). Media and entertainment (-0.22 per cent), computer software (-0.84 per cent), auto-LCVs/HCVs (-0.99 per cent) and auto-two and three wheelers (-1.52 per cent) were the four losing sectors.
The five top gaining indices were S&P BSE Metals (+1.68 per cent), CNX Metal (+1.58 per cent), S&P BSE Capital Goods (+1.39 per cent), CNX PSU Bank (+1.27 per cent) and S&P BSE PSU (+1.16 per cent).
On the National Stock Exchange, advancing stocks (825) outnumbered declining (577) stocks.
On the Nifty Index, the top five gaining stocks were: Coal India Ltd (NSE:COALINDIA) (+3.8 per cent, INR 414.90), Punjab National Bank (NSE:PNB) (+3.62 per cent, INR 143.05), UltraTech Cement Ltd (NSE:ULTRACEMCO) (+3.28 per cent, INR 2896.05), Cipla Ltd (NSE:CIPLA) (+2.84 per cent, INR 630.95), and Bank of Baroda (NSE:BANKBARODA) (+2.80 per cent, INR 150.50).
Realty major DLF Ltd (NSE:DLF) rose 2.57 per cent to INR 117.55 on news that it had resolved its dispute with private equity firm Blackstone regarding their assets in the Bengaluru market by agreeing to divide the portfolio.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.