MUMBAI (Reuters) – The BSE Sensex recovered on Monday led by technology stocks on value buying while metals and mining companies such as Sesa Sterlite (SESA.NS) surged after the completion of first round of coal block auctions.
However, broader gains were limited as investors were cautious ahead of the budget due on Feb. 28, while selling pressure seen in stocks such as DLF Ltd (DLF.NS) and Jindal Steel and Power (JNSP.NS) as they will be replaced from the broader Nifty from March 27.
The budget session of parliament started on Monday and market participants are hopeful of faster reforms in the government’s 2015/16 fiscal budget.
“We expect markets to trade sideways. The sentiment is bullish and we do expect there could be measures to reassure economic growth,” said Suresh Parmar, head, institutional equities at KJMC Capital Markets.
The BSE Sensex gained 0.17 percent to 29,281.01, while the broader Nifty was up 0.15 percent at 8,847.
Technology stocks gained on value-buying as investors seen some of the stocks were under-owned. Tata Consultancy Services (TCS.NS) added 1.6 percent while Infosys (INFY.NS) gained 0.4 percent.
Metals and mining companies surged after the successful completion of the India’s first auction to sell mines. Sesa Sterlite (SESA.NS) added 2.4 percent, while Hindalco Industries (HALC.NS) gained 1.3 percent.
Indian shares snapped a seven-day rally on Friday as sentiment for blue chips was hit after foreign investors sold index derivatives.
(Reporting by Indulal PM; Editing by Gopakumar Warrier)
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