Photo: iStock
Photo: iStock

Sensex, Nifty a tad up led by auto, banking stocks

  • At 11.31am, the benchmark Sensex was up 0.2% at 40521.61 points
  • The Nifty was 0.21% higher at 11946.85 points

Indian equities reversed their losses and were trading higher led by gains in auto, banking and steel stocks. Investors exercised caution ahead of key macro economics data releases, due this week, and a fast approaching US-China tariff deadline.

At 11.31am, the benchmark Sensex was up 0.2% at 40521.61 points, while the Nifty was 0.21% higher at 11946.85 points.

Among auto stocks, Maruti Suzuki India gained 2.4% after the company said in a note to BSE filling that the company increased production in November by 4.33% after having reduced output for nine straight months due to lower demand.

Tata Motors, Ashok Leyland, TVS Motors, Mahindra & Mahindra, Hero MotoCorp, and Bajaj Auto rose 0.70-2%. BSE Auto Index surged 1.4%.

Among banking stocks, Yes Bank, Indusind Bank, State Bank of India, Axis Bank, and ICICI Bank gained 0.4- 4.5%.

Metal stocks rose with Steel Authority of India Ltd, Vedanta Ltd, Tata Steel, Jindal Steel & Power, NALCO, Hindalco Industries Ltd, and JSW Steel gaining 1.2- 3.3%. BSE Metal Index rose 1.4%.

Vodafone Idea Ltd slumped 5% after chairman Kumar Mangalam Birla said the company may have to shut shop if there’s no relief on the statutory dues that need to be paid by January end. Dish TV gained 10% as the company said it will pay most of its debt through internal accruals.

Investors were cautious as they assess the probability of the US going ahead with its planned 15 December tariff hikes on Chinese imports.

Traders also focus on India’s retail inflation and factory output data on Thursday. Consumer prices probably rose 5.22% year-on-year in November compared with a 4.62% gain in October. Industrial production likely contracted 4.8% in October compared with a 4.3% contraction in September, according to a Bloomberg survey.

Volatility may remain high in the coming week too with list of important data lined up ahead, said Ajit Mishra, vice president, Research, Religare Broking Ltd.

“On the domestic front, participants will be eyeing CPI inflation and IIP numbers on December 12. Prior to that, the US Fed will announce their decision on interest rates on December 11. Besides, the trade talks between the US and China will also be on radar as additional tariffs on Chinese exports to the US will be effective from December 15," he said

Meanwhile, finance minister Nirmala Sitharaman on Saturday, at the Hindustan Times Leadership summit, said the Centre was looking at providing relief on personal income taxes, among several other things.