Sensex closes 84 points up ahead of rate review, budget

A benchmark index for Indian markets saw a moderate rise Monday even as a strong set of industrial output numbers for January tempered hope of a rate cut by the central bank and caution surrounding the upcoming general budget later this week.

The Reserve Bank of India is set to review the monetary policy Thursday, while the budget will be presented the next day.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,772.10 points, closed at 17,587.67 points, 84.43 points or 0.48 percent up compared to its previous close at 17,503.24 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange similarly closed higher at 5,359.55 points, up 26 points or 0.49 percent from its previous close.

Helped by a robust show by the manufacturing sector, especially consumer goods, India’s industrial output in January expanded at a fast paced 6.8 percent when compared to the sluggish rate in the past few months.

Broader markets were in the green with the BSE 500 index closing 0.66 percent higher. The BSE midcap index ended 1.06 percent higher while the BSE smallcap index closed 0.7 percent up.

Capital goods, consumer durables and realty stocks were among the major gainers, while IT scrips saw selling.

The market breadth was positive with 1,599 stocks advancing, 1,246 declining and 121 remaining unchanged.

Gainers on the Sensex included SBI, up 3.96 percent at Rs.2,310.25; L&T, up 3.54 percent at Rs.1,348.15; RIL, up 3.02 percent at Rs.796.95 and ICICI Bank, up 1.63 percent at Rs.929.65.

Major losers included M&M, down 1.88 percent at Rs.663.55; ONGC, down 1.71 percent at Rs.278; Infosys, down 1.51 percent at Rs.2,816.80 and TCS, down 1.35 percent at Rs.1,190.05.

Asian markets closed mixed as investors were spooked after after China’s trade figures underlined a slowdown in the world’s number two economy.

The Japanese Nikkei closed 0.4 percent lower at 9,889.86 points, while Hong Kong’s index slipped 0.23 percent at 21,134.18 points.

The Chinese Shanghai Composite index closed 0.19 percent down at 2,434.86 points.

European markets were also weak.

Britain’s FTSE 100 was trading flat at 5,887.31 points, while the German DAX was trading 0.36 percent up at 6,904.99 points.

The French CAC 40 was ruling 0.08 percent up at 3,490.12 points.