Sensex pares gains to end 142 pts higher, Nifty50 shy of 10,550

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NEW DELHI: After taking a day’s breather, the equity benchmark indices rose on Thursday underpinned by gains in metal, oil, auto and private bank stocks amid positive global cues. Decline in inflation also boosted market sentiment.

The government data on Thursday showed that wholesale price inflation eased to a six-month low of 2.84 per cent in January on cheaper food articles.

Reacting to the numbers, Nifty50 index closed 45 points, or 0.42 per cent, up at 10,546, while the BSE Sensex added 142 points, or 0.41 per cent, to close at 34,297.

In the Nifty50 pack, 30 stocks settled in the green, while 19 in the red. One stock remained unchanged.

However, the BSE Midcap and smallcap indices trailed benchmark Sensex, with a fall of 0.46 per cent and 1.27 per cent, respectively.

“Mixed trend was witnessed on sectoral front while decline continued on broader front. Market has been struggling in a broader range for last six sessions and it shows indecisiveness among the participants. The government along with the apex bank is trying every step to resolve issues in public sector banks but some negative news comes in every now and then, derailing the recovery,” said Jayant Manglik, President, Religare Broking.

“Trading becomes very difficult in such scenario due to erratic swings. We suggest keeping a close watch on global markets for cues and limiting leveraged positions until some clarity emerges,” Manglik added.

Shares of BPCL, Hindalco and ICICI Bank remained top gainers, with a gain of over 3 per cent each. Vedanta, HPCL and GAIL gained 2 per cent each.

Among the losers, Punjab National Bank (PNB), Indiabulls Housing Finance, Aurobindo Pharma and Cipla were at the top.

It was the second consecutive day of PNB’s fall after it reported a fraud of Rs 11,400 crore at one of its branches in Mumbai. The bank has alleged Nirav Modi and Gitanjali Gems for the fraud. Shares of Gitanjali Gems cracked 20 per cent on Thursday.

Sectoral indices on the NSE remained mixed. While pharma, PSU bank, realty, media and auto settled in the red, private bank, metal, IT and financial closed in the green.

As many as 30 stocks hit fresh 52-week highs on NSE, compared with 25 stocks that hit new 52-week lows on Thursday.

Globally, European stocks moved up for the second straight day backed by decent earnings. China was closed on account of New Year holidays.

Source: Economic Times