Indian shares extended last week’s rally on Monday, with rate-sensitive auto and realty stocks leading the gainers amid growing hopes the RBI will cut interest rates at its upcoming policy review on 19th. Other Asian markets are turning in a mixed performance as a fall in Japan’s core machinery orders last month and disappointing data out of China on industrial output, lending and retail sales tempered optimism over the positive U.S. jobs report.
The benchmark Sensex and the broader Nifty indexes are currently up about 0.2 percent each, while the BSE mid-cap and small-cap indexes are rising 0.4 percent and 0.3 percent, respectively.
Among the prominent gainers in the Nifty pack, Maruti Suzuki, Axis Bank, Asian Paints, HCL Technologies, HDFC, Coal India, Mahindra & Mahindra, Sun Pharma, Ranbaxy and Siemens are up 1-2 percent.
Reliance Industries is moving up 0.4 percent following an upgrade by global investment bank Bank of America Merrill Lynch to “neutral”from “underperform”.
Mahindra & Mahindra is rising 1.7 percent on reports it is recalling some of its XUV500 models to carry out replacement of certain parts. Pantaloon Retail India is rallying 2.3 percent after it entered into an agreement to sell its 22.5 percent stake in Future Generali Life Insurance to Industrial Investment Trust.
Suzlon Energy is gaining 1.8 percent after its board approved the allotment of equity shares of the company to lenders under a corporate debt restructuring scheme. Amtek Auto is climbing 8 percent as it entered into an agreement to acquire NeumayerTekfor Group of Germany.
Larsen & Toubro is losing a percent after the World Bank barred the company from participating in World Bank funded/executed projects for six months. Rashtriya Chemicals & Fertilizers is declining 1.5 percent after the government raised Rs. 310 crore from a 12.5 percent stake sale in the company.
Benchmark indexes Sensex and the Nifty jumped about 4 percent each last week on optimism the Indian economy has bottomed out in the December quarter. Global cues also remained supportive following upbeat economic data from the U.S. and China. The 30-share Sensex rose to its highest level in more than 4-1/2 weeks, while the broader Nifty index hit its highest level in over 4 weeks.
by RTT Staff Writer
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