Sensex rises ahead of RBI meet; Sun Pharma caps gains
The benchmark BSE Sensex on Monday edged up by 20.55 points in volatile trade to 27,848.99 as consumer goods gained on hopes that RBI would cut interest rates this week but a slump in Sun Pharma restricted index's gains.business Updated: Jun 01, 2015 17:52 IST
The benchmark BSE Sensex on Monday edged up by 20.55 points in volatile trade to 27,848.99 as consumer goods gained on hopes that RBI would cut interest rates this week but a slump in Sun Pharma restricted index's gains.
Sentiment remained upbeat after data showed Indian economy expanded 7.3 % in 2014-15 and manufacturing activity kicked up in May.RBI is scheduled to review its policy rates tomorrow."In reaction to improved GDP figure, equity markets, after flat start, inched higher in early trades...but cautiousness...ahead of RBI monetary policy review capped upside in index," said Jayant Manglik, President of Retail Distribution at Religare Securities.
Sun Pharma tumbled 8.99 per cent to close at Rs 878.95 after fourth quarter earnings came below market expectations. In volatile movements, the 30-share BSE barometer rose to 27,959.43 in early trade on the back of positive GDP numbers for March quarter, but fell on profit-booking to intra-day's low of 27,737.58.
Finally, it ended 20.55 points or 0.07 % higher at 27,848.99. Sensex had gained 321.73 points in Friday's trade at the beginning of the June series in the derivatives segment.
Brokers said buying by funds and other participants to enlarge their portfolios ahead of the RBI's policy review due tomorrow buoyed the sentiment.However, the 50-share NSE Nifty after rising to the day's high of 8,467.15, reacted to slump in Sun Pharma and slipped into the negative terrain and hit a low of 8,405.40 before settling 0.25 point, down at 8,433.40.
"Markets seemed to keenly wait for the rate cut. Few auto industry monthly sales data failed to cheer the street," said Gaurav Jain Director of Hem Securities. Globally, equities finished mixed with Shanghai Composite and Hang Seng indexes rallying by 4.72 and 0.63 %, respectively, while European stocks were marginally lower in their early trade.