Indian stocks extend gains; Sensex up 0.43%

Indian stocks extend gains; Sensex up 0.43%

Mumbai: Indian stocks extended gains for a fourth consecutive day as buying in pharmaceutical, capital goods and automobile shares helped the benchmark indices edge higher. After a flat opening, the benchmark indices swung between gains and losses as investors turned cautious after a three-day rally and turned to the upcoming F&O settlement on Thursday. However, strong closing in Asian markets and a positive opening in European shares helped the domestic markets close the day with gains.

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Sensex: 18,492 +0.43%

Nifty: 5,545 +0.34%

FTSE 100: 5,742 +0.35%

Nikkei: 9,648 +0.74%

Hindalco, Bajaj Auto, Dr Reddy’s and HDFC led the gains in the Nifty shares. Stocks of Hindalco and Sterlite Industries gained after metal prices in the London Metal Stock Exchange recovered on easing debt concerns in the European region. Read more...

Hindalco: 181 +3.96%

Bajaj Auto: 1,425 +3.01%

Dr Reddy’s Laboratories: 1,541 +2.42%

HDFC: 688 +2.13%

Sterlite Industries: 162 +1.03%

At the sectoral level, healthcare, capital goods and automobile shares led the gains on the BSE. BSE Oil & Gas index, on other hand, closed the day as biggest sectoral loser on the BSE. After rallying for the last two trading days, investors booked profits on state-owned oil firms such as GAIL, HPCL, BPCL and Indian Oil Corporation.

BSE Healthcare: 6,364 +0.95%

BSE Capital Goods: 13,720 +0.94%

BSE Auto: 8,759 +0.82%

BSE Oil & Gas: 9,130 –0.44%

Revival in sentiment towards defensive stocks led to buying in pharmaceutical stocks. Except four, all shares in the BSE Healthcare index closed the day with gains.

Jubilant Life Sciences: 197 +11.05%

Opto Circuits: 291 +4.04%

Divis Laboratories: 785 +2.63%

Apollo Hospitals: 485 +2.40%

Piramal Healthcare: 385 +2.05%

Shares of tyre manufacturers surged on falling rubber prices. According to Reuters, spot rubber price in Kerala has fallen over 6% since the beginning of this month. With rubber constituting 40% of tyre production costs, tyre manufacturers are expected to benefit from lower prices.

Ceat: 111 +16.72%

JK Tyre & Industries: 100 +5.03%

MRF: 6,840 +4.02%

Overall, 49.63% of the shares traded on the BSE closed the day with gains.

Graphic by Yogesh Kumar/Mint