Sensex edges up for second day on upbeat global cues
Domestic equities reversed early losses to jump for a second straight session on gains in capital goods and banking shares as global signals remained positive on rebound in crude oil prices.business Updated: May 10, 2016 19:30 IST
Domestic equities reversed early losses to jump for a second straight session on gains in capital goods and banking shares as global signals remained positive on rebound in crude oil prices.
Firm trend in regional markets led by Japan after yen sank to its lowest-level in two weeks against the dollar and better inflation data from China also helped. Europe was higher on solid corporate earnings.
The 30-share Sensex slipped by 75 points in early trade on profit-booking in winners from Monday’s 460-point rally.
However, buying reemerged on higher closing in Asia and strong opening in Europe as the index settled 83.67 points or 0.33% higher at 25,772.53.
Shares of FMCG major Hindustan Unilever surged 1.93% to Rs 862.45 after the company reported a 7% rise in standalone net profit for the March quarter.
The broader markets too displayed a firm trend as retail investors widened their bets, with the BSE mid-cap index rising 0.20% and small-cap gaining 0.11%.
“Resource stocks were in focus as oil prices eased a bit after fears of supply disruptions caused due to the Canadian wildfires were offset due to brimming inventories and a possible refined products glut,” said Shreyash Devalkar, Fund Manager – Equities, BNP Paribas Mutual Fund.
The Nifty rose 21.75 points or 0.28% to close at 7,887.80 after shuttling between 7,837.70 and 7,896.90.
Dr Reddy’s emerged as the star performer and closed 3.04% up at Rs 2,928.35 followed by Axis Bank up 2.22% at Rs 487.85.
Punjab & Sind Bank rose over 4% after the company reported a profit of Rs 98.12 crore for the March quarter.
Investor sentiment, however, remained caution due to key macroeconomic data -- IIP numbers and inflation -- to be released this week.
Overseas, banking stocks led gains in Europe after Swiss lender Credit Suisse posted a smaller-than-expected net loss in the first quarter. Key indices like France, Germany and the UK rose by 0.89% to 1.12%.
From Asia, Nikkei settled 2.15% higher, China, Hong Kong, South Korea and Taiwan moved up between 0.02% and 0.75% while Singapore index fell 0.90%.