Sensex, Nifty rise for second session, IT stocks fall

Indian shares climbed up for a second straight session on Monday after the U.S. Federal Reserve predicted steady growth and a potential halt in rate hikes this week.

According to post gross domestic product data for the October-December quarter and a Reuters’ poll forecasting an expansion of 6.9 percent, India has the fastest pace in a year. Fiscal deficit and manufacturing data are also expected in the short trading week.

The gains come after stock markets fell over a Rs.11,300 crore fraud that hit Punjab National Bank.

“The market has bottomed out for the time being and will discount in general the NPAs (non-performing assets) of state-run banks,” said R.K. Gupta, managing director of Taurus Asset Management.

“Corrections could happen, like with the Punjab National Bank saga, but overall the sentiment is positive. Investors will look to the RBI policy meet in April and the March-quarter corporate results.”

The broader NSE Nifty was up 0.66 percent at 10,560.45 as of 0625 GMT, while the benchmark BSE Sensex was 0.70 percent higher at 34,380.62.

For the first time in six seasons, shares were trading above the 50-day exponential moving average.
Bank and auto stocks were the leading gainers, with HDFC Bank rising as much as 1.62 percent and Maruti Suzuki India Ltd up 2.42 percent.

Shares of Sterlite Technologies Ltd jumped as much as 10.36 percent after the company procured a 35 billion-rupee order from the Indian Navy.

IT stocks, however, plunged, with the IT index falling 0.67 percent amid selling after stocks such as Tata Consultancy Services Ltd rose for four sessions.

Shares of Oriental Bank of Commerce Ltd fell as much as 12.7 percent after India’s federal police said on Sunday it had filed a fraud case against executives of Simbhaoli Sugar for causing alleged losses of 1.09 billion rupees ($16.85 million) to the state-run lender.

Asian shares were up, with MSCI’s broadest index of Asia-Pacific shares outside Japan 0.73 percent higher.

 

(Source: Reuters)

by TNBC Staff Reporter on February 26, 2018

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