NSE index edged higher on Tuesday, gaining for the fourth straight day as rate-sensitive stocks such as banks rose after a better-than-expected December retail inflation data raised hopes that the central bank would cut rates in February.
India’s annual consumer price inflation accelerated for the first time in five months in December to 5.0 per cent compared with a 5.4 per cent annual rise predicted by analysts in a Reuters poll.
Energy stocks decline
However, the gains were capped after a sharp fall in energy stocks such as Oil and Natural Gas Corp as oil prices fell further to hit a near six-year low.
Overseas investors bought Indian shares worth Rs 245 crore ($39.46 million) on Monday, provisional exchange data showed, after selling shares worth $517.57 million in the past four consecutive sessions.
“It’s earnings season and we expect stock-specific action. Data released yesterday was positive and financial stocks should do well. We are cautiously optimistic in the near term,’’ said Suresh Parmar, head of institutional equities at KJMC Capital Markets.
The benchmark BSE index edged down 0.04 per cent to 27,578.18, while the broader NSE index gained 0.19 per cent to 8,338.75.
Rate-sensitive stocks gained. State Bank of India was up 0.7 per cent, while Bank of Baroda Ltd was up 1.1 per cent.
Shares of Hindalco Industries Ltd were up 1.3 per cent after rival Alcoa Inc’s earnings beat forecasts.
However, energy shares fell, with Oil and Natural Gas Corp losing 2.1 per cent and Reliance Industries declining 0.6 per cent, tracking a fall in global crude prices. ($1 = 62.0850 rupees)
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