Closing Bell: Sensex, Nifty erase gains to close flat, TCS, Tata Motors top losers
Mumbai: The Nifty NSE and BSE Sensex rose on Tuesday (before closing flat) after much softer-than-expected consumer inflation (CPI) data fuelled hopes of a rate cut by the central bank at its next policy review in August, with some traders even pushing for a move ahead of the meeting. Data released late on Monday showed consumer inflation easing to 2.18% in May, helped by a drop in food prices - the lowest since India started publishing an economy-wide consumer price index in 2012. Inflation is now well below the Reserve Bank of India’s (RBI) medium-term target of 4%, and at the lower end of its CPI projection of 2%-3.5% in the first half of the fiscal year.
The soft data has raised expectations that the RBI will cut its policy repo rate by 25 bps at its next policy meeting on 1-2 August, with some traders speculating a move ahead of that. India last delivered two rate cuts outside of scheduled meetings in early 2015 under the then governor Raghuram Rajan, when the country had not yet adopted a monetary policy committee to decide on rates. “They should do an out-of-policy rate cut. What is the point of waiting for two more months when inflation will further fall from here for the next two months?” said a dealer at a foreign bank, who was not authorised to talk to media.
3.30pm: BSE Sensex closed higher by 8 points, or 0.03%, to 31,103, while the Nifty 50 fell 10 points, or 0.10%, to 9,607. Lupin, Powergrid and NTPC are the top gainers with shares rising by 1.61%, 1.55%and 1.42%.
The top losers were Tata Motors, Wipro and TCS with shares falling by 1.74%, 1.65% and 1.24%.
3.15pm: BSE Sensex trades higher by 25 points, or 0.08%, to 31,121, while the Nifty 50 falls 2 points, or 0.02%, to 9615.
■ 2.30pm: BSE Sensex trades higher by 93 points, or 0.30%, to 31,189, while the Nifty 50 rises 16 points, or 0.17%, to 9,633.
■ 1.42pm: Out of the 30 shares in the index, 20 stocks trade in positive territory while the remaining 10 are trading lower. The major losers are TCS, Tata Motors, GAIL, Infosys and Wipro with their scrips trading lower by 0.74%, 0.65%, 0.54%, 0.39% and 0.48%.
■ 1.00pm: Realty and financial services stocks rise the most. NSE Nifty realty index and NSE Nifty financial services index rise by 0.81%, and 0.71%, respectively.
■ 12.26pm: BSE Sensex trades higher by 102 points, or 0.33%, to 31,197, while the Nifty 50 rises 23 points, or 0.24%, to 9,640. The shares of HDFC, Power Grid and Lupin are the top gainers, rising by 1.88%, 1.80%, and 1.31%, respectively, on BSE.
■ 11.03am: BSE Sensex trades higher by 94 points, or 0.30%, to 31,189, while the Nifty 50 rises 23 points, or 0.24%, to 9,640. HDFC, Sun Pharma, Lupin and NTPC are top gainers with gains in the range of 1.89%, 1.30%, 1.22% and 1.01%, respectively.
■ 10.40 am: Housing finance companies trade higher. Repco Home Finance rose 7.3%, Dewan Housing Finance Ltd 2.6%, Housing Finance Corp Ltd 1.7%, LIC Housing Finance 1.6%, PNB Housing Finance rose 1%.
■ 10.15am: BSE Sensex trades higher by 66 points, or 0.21%, to 31,162, while the Nifty 50 rises 12 points, or 0.13%, to 9,629.
■ 9.30am: Reliance Communications (RCom) Ltd shares rise 1.1% to Rs18.60 after Bloomberg reported that the company has approached Citic Telecom International Holdings Ltd as it makes a fresh attempt to attract a buyer for its undersea cable unit.
■ 9.24am: BSE Sensex trades higher by 60 points, or 0.19%, to 31,156, while the Nifty 50 rises 19 points, or 0.19%, to 9,635.
■ 9.20am: Sun Pharmaceuticals Industries Ltd rose 3% to Rs548.80 after the company said in a notice to BSE that its arm received final approval from US drug regulator for its abbreviated new drug application for generic version of Zetia tablets 10mg.
■ 9.15am: The rupee opened at 64.44 a dollar. At 9.15am, the rupee was trading at 64.44, up 0.01% from its Monday’s close of 64.44.
■ 9.12am: Jaiprakash Associates Ltd shares rise 8.6% to Rs13.45 after CNBC reported that the JP Associate and Ultratech Cement deal may close by June end.
■ 9.10am: Asian currencies trade higher. Thai baht was up 0.22%, Malaysian ringgit 0.2%, Indonesian rupiah 0.11%, China offshore 0.1%, Singapore dollar 0.08% and Philippines peso 0.07%. However, South Korean won was down 0.12%, Taiwan dollar 0.04% and Japanese yen fell 0.04%.
■ 9.05am: Vascon Engineers Ltd shares fall 8% to Rs42 after the company cancelled compulsorily convertible debt issue citing differences with Manan Finserve and Vinca Rosea Farms.
■ 9.00am: The 10-year bond yield was trading at 6.496%—a level last seen on 7 February, compared to its previous close of 6.517%. Bond yields and prices move in opposite directions.
With inputs from Reuters