Sensex edges higher for second day; telecom, power stocks rise
Image used for representational purpose only. (File photo |Reuters)
MUMBAI: In a volatile trade, BSE Sensex moved up by another 34 points to end at 26,350.17 on sustained buying mainly in telecom, power, realty and auto, but banking stocks were under pressure as RBI unexpectedly increased the CRR to 100 per cent on incremental deposits.
Besides banking, shares of consumer durables, finance and IT sectors declined due to selling pressure.
The Sensex resumed lower at 26,303.52 and hovered in wide a range of 26,183.22 and 26,413.99 before ending at 26,350.17, showing a gain of 33.83 points or 0.13 per cent.
The Sensex had gained by 490 points, or 1.89 per cent, in two days.
The NSE 50-share Nifty moved up by 12.60 points, or 0.16 per cent, to end at 8,126.90 after moving in a range of 8,146.50 and 8,066.50.
Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd., “Market traded lower in the early hours of trade as RBI’s unexpected move to increase the CRR to 100 per cent on incremental deposits brought banks under pressure. RBI’s move is negative for the banks as the additional interest cost will impact the banks’ profitability in the medium term.”
Overseas, most Asian stocks rose as oil prices slid on unease about this week’s meeting of Organization of the Petroleum Exporting Countries (OPEC) members to discuss possible output cuts.
Key benchmark indices in China, Hong Kong, Singapore, South Korea and Taiwan rose by 0.19 per cent to 0.69 per cent, while Japan’s Nikkei fell by 0.13 per cent.
However, European markets were trading lower amid continued political uncertainty in Italy.
Key indices in France, Germany moved down by 0.63 per cent to 0.77 per cent.
US stocks hit fresh records in a shortened trading session on Friday as investors bet on a pick up in economic growth and rising corporate profits.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 372.88 crores on last Friday, as per provisional data released by the stock exchanges.
Metal and mining stocks gained as copper prices rose in global commodity markets.