Sensex rises 188 points despite weak IIP, high inflation
The benchmark BSE Sensex recovered over 188 points in early trade on Wednesday on value-buying by investors despite industrial production in November plunging to an over four-year low and consumer inflation shooting up to 5.61% in December.business Updated: Jan 13, 2016 11:47 IST
The benchmark BSE Sensex recovered over 188 points in early trade on Wednesday on value-buying by investors despite industrial production in November plunging to an over four-year low and consumer inflation shooting up to 5.61% in December.
A higher trend on other Asian bourses, tracking overnight gains in the the European and US markets, helped trading sentiment improve, brokers said.
The 30-share barometer, which had lost 252.30 points in the previous two sessions, was trading higher by 188.34 points, or 0.76%, at 24,870.37 with realty, pharma, power, consumer durables, metal, auto and oil & gas sectors leading the recovery.
On similar lines, the NSE Nifty rose 59.85 points, or 0.79%, at 7,570.15.
Meanwhile, Industrial production (IIP) contracted by 3.2% in November -- the lowest level in over four years --due to poor performance of manufacturing sector and a sharp decline in capital goods output.
Rising for the fifth straight month, retail inflation or CPI, quickened to 5.61% in December, limiting the headroom for the Reserve Bank to lower rate next month.
Shares of country’s largest software exporter TCS on Wednesday fell 0.63% to Rs 2,309.45 after dipping to Rs 2,301.20 despite a 14.2% jump in net profit at Rs 6,083 crore for the third quarter of the current fiscal.
Among other Asian markets, Hong Kong’s Hang Seng was up 2.23% while Japan’s Nikkei gained 2.48% in early trade. Shanghai Composite Index was up 0.60%.
The US Dow Jones Industrial Average ended 0.72% higher in Tuesday’s trade.