Domestic equity benchmarks closed higher today with Nifty ending above 11,660 and Sensex reclaiming 39,000 after six trading sessions. BSE Sensex and NSE Nifty traded broadly higher throughout the day today, led by gains in Realty and Energy stocks.
The 30-share index BSE Sensex ended 234 points higher at 39,131 on Tuesday and the broader index Nifty50 closed at 11,661, registering a gain of 72 points. Sectorally, only IT and Auto sector stocks traded on a bearish note, while highest gains were recorded in Energy, CPSE, PSE and Realty stocks, each gaining over 1%.
"A slew of positive vibes from heavy weights ahead of earnings and lower domestic yield supported the market while profit booking on IT stocks & weak rupee limited gains. Earnings will be the major catalyst in the market where investors are keen to get cues from Q1FY20 results & guidance. Sharp fall in domestic 10yr yield to 6.34% and accommodative stance of RBI provides a hope for further monetary easing," said Mr. Vinod Nair, Head of Research, Geojit Financial Services Ltd.
In major stock announcements, Yes Bank shares rose over 10% ahead of earnings report, scheduled to be released tomorrow, while Cummins India shares declined over 5% intraday on Tuesday, after the company's Managing Director, Director and Key Managerial Personnel resigned today. DHFL stock bounced back after 2 days of fall and rose almost 7% after the company said it remains a 'strong going entity'.
Buying interest in today's afternoon trade was seen in YES Bank, Jubilant Foods, Tata Motors, ONGC, Powergrid, NTPC and Zee Entertainment, while selling interest were seen in TCS, M&M, HCL Tech, PC Jeweller, Reliance Communications, Deepak Fertilizers and Manpasand Beverages.
Listed companies namely, TV18 Broadcast, Network18 Media & Investments,Federal Bank and HDFC Asset Management Company posted their Q1 earnings while DCB Bank, Next Mediaworks, Multi Commodity Exchange of India & Agro Tech Foods are expected to post their quarterly earnings later in the day.
At the interbank forex market, the Indian rupee opened almost flat at 68.59, registering a decline of 5 paise over its last close of 68.54 against the US dollar, as the country's exports entered the negative zone after a gap of eight months.
As per government data, India's exports recorded a decline of 9.71% to $25.01 billion in June while country's Imports also declined 9% to $40.29 billion in June mainly due to falling prices of petroleum products, leaving a trade deficit of $15.28 billion.
Elsewhere in Asia, equity markets traded on a mixed note, while Eueopean shares drifted along with US markets, that started flat as much of the focus was shifted to U.S. retail sales data later to be released, which comes ahead of major central bank decisions like the Fed rate cut.
Meanwhile, Brent crude futures, the global oil benchmark, rose 0.12 per cent to USD 66.56 per barrel in the early trade and later traded at USD 59.73 per barrel.
Edited By Rupa Burman Roy