(RTTNews.com) – Indian shares rose on Tuesday, with the Nifty index hitting a record high to rise above the psychological 9,000 level, aided by renewed foreign fund flows as the euphoria over Budget continued.
Underlying sentiment remained positive on expectations that the Modi government’s move to allow fungibility by clubbing foreign direct investment and foreign portfolio investment would raise the country’s weight in MSCI indexes.
The government today introduced the Insurance Laws (Amendment) Bill, 2015, in Lok Sabha to replace the Ordinance promulgated earlier after it could not be passed in the Rajya Sabha owing to a concerted effort by the Opposition. The government will use its majority in the lower house to push the passage of the Bill. If Rajya Sabha rejects it again, the government can call a joint session after six months to get the Bill passed.
Meanwhile, with the RBI and government now agreeing on a monetary policy framework to bring down inflation to less than 6 percent by January 2016 and to around 4 percent by March next year, it is now expected that the RBI will lower interest rates a little slower than what was anticipated earlier.
The benchmark index BSE Sensex ended the session up 134.59 points or 0.46 percent at 29,593.73, while the broader Nifty index closed up 39.50 points or 0.44 percent at 8,996.25. The Sensex hit an intraday high of 29,636.86 and the Nifty climbed to 9,008.40 earlier in the day.
Reliance Industries soared 4.2 percent after a global brokerage firm has come up with a “buy” call on the stock and state-owned insurer Life Insurance Corporation of India said it had increased its holding in the company by 2.097 percent to 9.084 percent.
TCS, India’s largest software exporter, gained 4.3 percent, PSU lenders like Bank of Baroda and PNB rose around 3 percent each, drugmaker Cipla rallied 2.5 percent and mortgage lender HDFC closed 2.2 percent higher.
Hotel Leelaventure shares climbed 8.2 percent. The hospitality major unveiled a debt-reduction plan through sale of assets in Goa and Chennai. Sun Pharmaceutical Industries rose 1.8 percent. The company signed an agreement to buy GlaxoSmithKline’s Opiates business in Australia for an undisclosed amount.
Tata Power Company advanced 1.2 percent after commissioning its first unit of hydro plant in Bhutan. Nectar Lifesciences rallied 9.7 percent after the company said it has received approval from European cGMP for Cephalosporin APIs’ manufacturing facility in Dera Bassi, Punjab.
Oil India fell 2.3 percent and Cairn India dropped 0.8 percent after Brent crude prices fell nearly 5 percent on Monday, the most in a month, on worries about high oil supplies. Bharti Airtel slipped 0.2 percent. The telecom major partnered with China mobile to work jointly on evolving high technologies like 5G and procuring telecom devices and equipment.
The Asian markets ended mixed as worries over continued slowdown in China offset optimism fueled by overnight bullishness in U.S. stocks. While Chinese shares tumbled on economic as well as liquidity concerns, Australian shares reversed early gains after the RBA’s decision to leave interest rates unchanged.
Japanese shares ended little changed with a negative bias as the yen advanced on comments by an economic adviser to Japanese Prime Minister Shinzo Abe that the Bank of Japan should avoid extra stimulus measures for some time to ensure the economy doesn’t overheat.
European stocks inched higher in early trading, with sentiment underpinned by better-than-expected data from Germany and Spain.
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