Mumbai: The BSE Sensex reversed early losses and climbed on Wednesday.
By 11:27 am, the main 30-share BSE index was up 0.68% at 16,109.84, after dropping 0.5% in early trade.
Markets at 02:06 pm on 14-12-2011.
India’s wholesale price index (WPI) rose a higher-than expected 9.11% in November from a year earlier, government data showed on Wednesday
“There is an emerging consensus that there will be a pause to the rate hike cycle so there may be some recovery following that,” said Jigar Shah, senior vice-president, Kim Eng Securities.
Financial stocks led the gains, with State Bank of India climbing 2.7%. Rivals ICICI Bank and HDFC Bank rose 1.2% and 0.7% respectively.
Export-driven shares rose as the rupee fell to a record low versus the dollar for the third straight day.
Drugmakers Sun Pharma firmed 2.3% and Cipla was up 1.2%. Software services exporter Tata Consultancy Services gained 0.8%.
Shah said the main index, which had snapped a near 6% fall over three days on Tuesday, was unlikely to sustain the gains as growth concerns remained and the lingering euro zone debt problem kept risk appetite low.
The benchmark index is down 22% since the start of 2011, making it one of the world’s worst performers this year.
Capital goods maker Areva T&D fell 20% after its plan to separate transmission and distribution business took effect.
Tata Teleservices Maharashtra gained 3% after The Times of India reported that Japanese giant NTT Docomo is set to discuss an option of increasing its stake in parent Tata Teleservices to 35% in next four months.
The 50-share NSE index was up 0.8% at 4,816.7.
In the broader market, losers led gainers 706 to 533 on a total volume of about 107.7 million shares.
Asian shares drifted lower and the euro floundered near an 11-month low on Wednesday after the Federal Reserve failed to take any new steps to stimulate growth and offset the chilling effects of Europe’s still-unresolved debt crisis.
The MSCI’s broadest index of Asia Pacific shares outside Japan was down 0.35%.
Stocks on the move
• Cairn India rose 2.5% to Rs315.25 after Citi raised its target price to Rs358 from 340 and maintained ‘buy’ rating on bullish outlook for crude oil prices.
• Apparels maker Arvind Ltd rose 3% after it formed a joint venture with PD Fiber Glass Group for manufacturing glass fabrics in India.