Markets surged backed by positive cues from both global and domestic markets. Markets started the day higher following the outcome of lower inflation numbers which came in as a relief to the markets as this indicated that the RBI may now consider cutting interest rates in its upcoming monetary policy review. The headline inflation eased to a five-month low of 6.16% in December from a 14-month high of 7.52% in November, helped by a softening in vegetable prices.
Asian markets ended higher tracking overnight gains on Wall Street after better-than-expected U.S. retail sales figures. Similarly the European markets also grew tracking moves in global markets after investor sentiment got a boost from the World Bank’s upgraded forecasts for global growth this year. The overall market breadth was positive. On BSE, 1,375 shares gained and 1,293 shares fell.
The S&P BSE Sensex touched a high of 21,302 and a low of 21,091 before it ended 1.2% or 256 points higher to close at 21,289. The Nifty too gained 1.3% or 79 points before it closed at 6,320 points. The mid cap and small cap stocks grew marginally as compared to their large cap peers. Both the S&P BSE Mid-cap and S&P BSE Small-cap indices gained 0.2% and 0.3% respectively.
Majority of the indices ended higher on the S&P BSE sectoral space. The S&P BSE Consumer Durable index and the S&P BSE Healthcare indices were the only two losers which fell 0.8% and 0.02% respectively. The S&P BSE Capital Goods index emerged as the highest gainer which grew by 2%. This was followed by the interest rate sensitive sectors which took relief from easing inflation data which in turn raised the probability of interest rate cuts. The S&P BSE Bankex and S&P BSE realty indices grew by 1.6% and 1.3% respectively.
Among the 30 stocks on BSE, all stocks gained with no losers. L&T, HDFC, SSLT, BHEL and ICICI Bank were the top five gainers.
As per the data released by SEBI, Foreign institutional investors (FIIs) were net buyers in equity to the tune of Rs 171 crores. Similarly, they were net buyers in debt segment to the extent of Rs 5,289 crores.
