Chennai, Sept 7:
The Sensex and Nifty were trading marginally higher amid weak European cues.
At 2.50 p.m., the 30-share BSE index Sensex was up 14.53 points or 0.05 per cent at 31,675.54 and the 50-share NSE index Nifty was up 16.85 points or 0.17 per cent at 9,933.05.
Among BSE sectoral indices, realty index was the star-performer and was up 1.27 per cent,metal 1.24 per cent, auto and healthcare 0.74 per cent each. On the other hand, oil & gas index was down 0.25 per cent, FMCG 0.24 per cent and consumer durables 0.15 per cent.
Top five Sensex gainers were M&M (+1.79%), Dr Reddy’s (+1.35%), Sun Pharma (+1.26%), Bajaj Auto (+1.17%) and Maruti (+0.89%), while the major losers were ITC (-2.03%), Tata Motors (-1.41%), Coal India (-1.25%), ICICI Bank (-0.75%) and Bharti Airtel (-0.72%).
Global markets recovered after the US government agreed to raise its debt limit until December.
US President Donald Trump had forged a surprising deal with Democrats in Congress on Wednesday to extend the US debt limit and provide government funding until December 15, embracing his political adversaries and blindsiding fellow Republicans in a rare bipartisan accord.
The agreement, which eliminates the near-term risk of a government shutdown, helped the MSCI’s broadest index of Asia-Pacific shares outside Japan gain 0.5 per cent. Japan’s Nikkei closed 0.2 per cent higher.
North Korea tensions
The outlook for Indian markets still remains subdued given continued concerns over the escalating tensions around North Korea’s nuclear test, but analysts said markets were still being supported by domestic retail investments, preventing any steep losses.
“There has been a sustained inflow trend into domestic mutual funds and retail participation into equities markets. The liquidity flow is reasonably abundant,” said Harish Krishnan, senior fund manager – equity at Kotak Mutual Fund.
“Given the stretched valuations, we don’t see a significant upside either,” he added.
The Nifty Financial Services index climbed for the third consecutive session, led by Nifty 50 top percentage gainer Indiabulls Housing and Axis Bank Ltd, up as much as 4.2 per cent and 1.3 per cent, respectively.
Himachal Futuristic Communications Ltd, a maker of fibre cables and other telecom equipment, extended gains to rise as much as 9.96 per cent to its highest in more than nine years after US-based investment manager GMO LLC bought 11.1 mln shares at a premium of about 12 per cent in a bulk deal on Wednesday.
Eicher Motors Ltd, the maker of Royal Enfield motorbikes, rose as much as 2.5 per cent as a media report said that the company is set to make a binding takeover bid for Italian motorcycle manufacturer Ducati for $1.8 billion-$2 billion.
(This article was published on September 7, 2017)
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