Sensex up 192 pts to 6-wk high on FII inflows

Mumbai: The BSE Sensex shot up 192 points to 6-week high of 16,643.74 on sustained FIIs inflows, low food inflation and firm overseas markets. Realty, metals, power and banking stocks were in good demand. ICICI Bank, L&T, RIL, HDFC, Sterlite Ind, Tata Power, Tata Motor, HDFC Bank, Hindalco and NTPC added nearly 160 points to the gains.

The 30-scrip Sensex remained in the positive terrain throughout the day before closing at 16,643.74, up 192.27 points or 1.17 per cent. Besides, the 50-scrip NSE index Nifty crossed the 5K-mark after December 7, up 62.60 points or 1.26 per cent at 5,018.40. Analysts said that food inflation`s remaining in the negative terrain for three weeks, against the backdrop of overall rate of price rise remaining low, led to hopes that the Reserve Bank may cut lending rates at its monetary review next week.

Food inflation was (-)0.42 per cent for the week ended January 7, up from (-)2.90 per cent in the previous week but still at considerably lower level from the recent past. "Food inflation coming in the negative territory again supported the positive sentiments. Chances of RBI easing its stance in the upcoming 24th Jan monetary policy meeting have increased," said Shanu Goel, Research Analyst at Bonanza Portfolio.

Globally, Asian and European markets were in the positive zone and aided Indian equities. FIIs remained net buyers for 13 trading sessions in a row and picked up shares worth Rs 961.30 crore yesterday as per Sebi data. "Overnight cues from the US market, after important announcements pertaining to jobless claims and housing data will also affected the market sentiments," Goel added.

Meanwhile, key indices in China, Hong Kong, Japan, Singapore and South Korea gained up to 1.31 per cent. Markets in Europe were also trading firm in the afternoon. From the Sensex pack, Sterlite gained 6.77 per cent, followed by Tata Power (6.08 pc), Hindalco (5.06 pc), DLF (4.62 pc), NTPC (4.19 pc), ICICI (3.51 pc), CIL (3.03 pc), Maruti Suzuki (2.84 pc), Sun Pharma (2.55 pc), L&T (2.49 pc), Tata Steel (2.44 pc), Hero MotoCorp (2.35 pc), Tata Motors (2.22 pc), HDFC (1.49 pc), Jindal Steel (1.48 pc), ONGC (1.38 pc), Gail India (1.18 pc), SBI (1.08 pc) and RIL (1.06 pc).

In the broader market, Anil Ambani led companies gained with Reliance Capital up 3.71 per cent, RCom (3.33 pc) RPower (2.58 pc), RInfra (3.73 pc) and RMedia (0.93 pc). Among the sectoral indices, BSE-Realty spurted 3.54 pc, Metals – 2.81 pc, Power – 2.43 pc, Bankex – 1.85 pc, PSU – 1.51 pc and Healthcare – 1.43 pc. The total market breadth at BSE turned positive with 1,809 stocks gaining ground, as against 982 ending in losses. The total turnover was relatively up at Rs 2,509.13 crore from Rs 2,484.53 crore on Wednesday.