New Delhi: The Bombay Stock Exchange Sensex maintained positive opening but lost some gains to end 0.91% higher on Tuesday. Firm Asian markets and positive opening of the European markets also boosted the sentiments.
Markets opened 1.5% with a strong buying sentiment as government slashed excise and service tax as stimulus to boost slowing economy. Prices of most manufactured products are likely to come down following a reduction in excise duty to 8%.
Investors are also eyeing rate cuts by RBI to allow more liquidity into the system. But some volatility is expected to remain ahead of the expiry of Futures & Options (F&O) contracts for February 2009 series on Thursday, 26 February. With rate duty cuts and reduced rates expectations auto metal and banking stocks rallied.
The 30-share index failed to reach the 9,000 mark but closed at 8,902.56, 80.50 points higher and 50-share NSE Nifty ended 28.60 points up at 2,762.50.
Auto stocks snapped from demand worries to gain as Mahindra and Mahindra and Tata Motors led the rally gaining by 7.90% to Rs318.40 and 5.87% to Rs139.85 respectively. Maruti Suzuki also surged by 3.20% to Rs662.75.
Other gainers from the BSE pack were Reliance Infra by 3.60% to Rs506.75, TCS Ltd by 2.85% to Rs479.80, Infosys Technologies by 2.72% to Rs1,216.25, Wipro by 2.47% to Rs217.45, Hindalco Industries by 2.43% to Rs40.05 and ONGC by 2.37% to Rs696.75.
There were some hefty losers on the index as well like Ranbaxy Laboratories, which fell by 3.54% to Rs207.25, Housing Development and Finance Corp by 2.68% to Rs1,254.40, Larsen and Toubro by 2.08% to Rs612.45, DLF Ltd by 1.75% to Rs154.60, and Reliance Communication by 1.75% to Rs154.45.
On the global markets front, European markets are trading positive on Wall Street surge. Asian Markets were also extended gains of Dow Jones as Japan’s Nikkei gained 2.7% and Hong Kong’s Hang Seng rose by 1.6%.