After oscillating in a narrow range around the flat line, the BSE Sensex inched up higher for a second straight session to an over seven-month high, buoyed by arrival of monsoon rains in Kerala and continued foreign fund inflows following RBI’s accommodative policy.
Sentiment also got a boost after rupee continued its upward journey against the American unit at the forex market.
Telecom stocks were in the limelight after the inter-ministerial panel Telecom Commission backed lowering of spectrum usage charge to 3% of their annual revenue from next auction.
Shares of Reliance Communications jumped 1.65% to Rs 49.20 and Bharti Airtel climbed 0.93% to Rs 352.40.
Defence stocks such as Walchandnagar, Reliance Defence, BEML and Bharat Electronics zoomed up to 10.86% on hopes they may get new contracts after reports that India is all set to become member of Missile Technology Control Regime as all hurdles related to its membership have been cleared.
“However, by the end of the trading session, participants shrugged of positive developments to book profits and take money off the table,” said Shreyash Devalkar, Fund Manager – Equities, BNP Paribas Mutual Fund.
On the day, Sensex opened higher at 27,085.24 and moved between 27,105.41 and 26,973.71, before ending at 27,020.66, showing a moderate rise of 10.99 points or 0.04%- its fresh highest closing since October 28.
The NSE Nifty inched higher by 6.60 points or 0.08% to close at 8,273.05.
Meanwhile, foreign investors bought shares worth a net Rs 499.73 crore on Tuesday, provisional data showed.
Globally Asian markets ended mixed with Japan’s Nikkei rising 0.93%, while Hong Kong’s Hang Seng shed 0.14%. Shanghai Composite Index fell 0.30%.
European shares fell at the start of trading as the ECB prepared to launch radical stimulus measures aimed at boosting economic growth in the struggling euro zone.