Markets scale record highs for second day in row

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The biggest gainers on Sensex were Hero MotoCorp, ITC and Axis Bank. (Courtesy: PTI photo)The benchmark indices on Tuesday ended the day with yet another record high ahead of the US-China trade deal. The rise in the benchmarks also came on the back of steadying oil prices and expectations of a growth-oriented Union Budget. Sensex gained 92.94 points to close at 41,952.63 points, while Nifty50 gained 0.27% to close at 12,362.20 points. The biggest gainers on Sensex were Hero MotoCorp, ITC and Axis Bank. Stocks of Hero MotoCorp rose by 1.80% to close at Rs 2,408.80 a piece. On the other hand, the biggest losers on Sensex were IndusInd Bank, Reliance Industries and Kotak Mahindra Bank. Shares of IndusInd Bank fell by 3.85% to close at Rs 1,481.10 a piece after the company reported its quarterly earnings. Sectorally, BSE Fast Moving Consumer Goods Index gained the most, followed by BSE Metal and BSE Power Index. BSE Bankex and BSE Energy dragged the most. According to market experts, bank stocks fell because further rate cuts look less likely in the face of the sharp increase in inflation. Speaking about the trend, UR Bhat, director, Dalton Capital Advisors (India), said the markets were looking forward to the US-China trade deal and were not concerned with the data on inflation in December.“The reason for pick-up in Wholesale Price Index (WPI) is largely higher food inflation and the adverse base effect. With demand condition remaining weak and the core WPI in deflation territory, as also food prices are expected to moderate with the ensuing rabi crop. The market is more concerned with the US-China trade deal and the news flow on the forthcoming federal budget,” he said. The CPI-based retail inflation shot up to a 67-month high of 7.4% in December 2019 from 5.5% in November 2019. Food inflation had accelerated to a six-year high at 14.1%. The markets are ignoring the sharp spike in inflation, driven by higher food prices. Vinod Nair, head of research, Geojit Financial Services, cited some reasons for optimism in the markets. “Market is moving ahead ignoring the sudden jump in CPI with an optimistic view on the budget and earnings growth visible in the on-going Q3 results.” Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

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