Sensex ends in the red but off lows, midcaps outperform1 min read . Updated: 15 Jan 2020, 03:43 PM IST
- Hero MotoCorp, ITC, M&M, Tech Mahindra, Nestle India, Axis Bank, HCL Tech, NTPC, HDFC and HUL were among the top gainers in Sensex 30 stocks
Shrugging off a weak start, Indian stocks markets edged higher to extend their record-breaking streak. However the gains were capped as a retail inflation limits the ability of the Reserve Bank of India to cut rates further to revive economic growth. The Sensex ended 84 points higher at 41,944, a new closing high. The broader Nifty also closed at a new high of 12,362, up 0.27%.
Hero MotoCorp, ITC, M&M, Tech Mahindra, Nestle India, Axis Bank, HCL Tech, NTPC, HDFC and HUL rose between 1% and 2%.
IndusInd Bank fell 4% after the lender reported higher provisions for bad loans despite posting a 33% growth in net profit.
"Market is moving ahead ignoring the sudden jump in CPI with an optimistic view on the budget and earnings growth visible in the on-going Q3 results. The month-on-month bounce in inflation is expected to settle since a large part of the gains are one-time in nature, as indicated in the WPI which is still sober in-line with the slow activities of the economy," Vinod Nair, head of research, Geojit Financial Services.
The annual rate of inflation based on monthly wholesale price index (WPI) stood at 2.59% in December as against 0.58% in November due to increase in prices of food articles, data released by the government showed.
Global markets were mostly higher today, tracking a firm Wall Street close overnight. Investors are now looking ahead to the signing of an initial trade deal between Washington and Beijing and the potential for future talks. The US Treasury Department on Monday dropped its designation of China as a currency manipulator days before top officials of the world's two largest economies were due to sign a preliminary trade agreement to ease an 18-month-old tariff war.
The world’s largest economies are expected to sign a so-called “Phase 1" trade agreement on Wednesday. It is being viewed as an opening to future negotiations that will deal with more complicated trade issues. (With Agency Inputs)