Nifty snaps 5-day selling streak

FE Team | Published: July 16, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

MUMBAI, July 15 (Reuters): The Nifty rose about 1 per cent on Tuesday, snapping a five-day losing streak as rate-sensitive stocks such as ICICI Bank surged after consumer inflation in June slowed to the lowest since the figures were published in January 2012.
Data late on Monday showed India's retail inflation eased in June to 7.31 per cent from a year earlier after the new government curbed farm exports. However, analysts said the central bank was unlikely to cut interest rates in the near term due to concerns that drought would damage summer crops.
Traders said recent declines in shares that dragged the Nifty down 4.5 per cent since hitting a record high on July 8 had also provided attractive entry point.
"Markets saw some inflation numbers led bottom fishing. India remains a buy on dips market. Now is the time to pick up some of the high quality stocks that slipped earlier," said G. Chokkalingam, founder of Equinomics, a research and fund advisory firm.
The Nifty rose 0.97 per cent, or 72.50 points, to end at 7,526.65, after slumping to over five-week low in the previous session.
The Sensex gained 0.89 per cent, or 221.67 points, to end at 25,228.65.
ICICI Bank rose 3.8 per cent, while Axis Bank rose 2.8 per cent.
Among state-run lenders, State Bank of India surged 4.4 per cent and Bank of Baroda rose 4.1 per cent.
SBI gains were also attributed partly to the bank reducing interest rates on its bulk and retail term deposits.
In other interest rate sensitive stocks, IDFC rose 1.8 per cent and DLF advanced 3 per cent.
In auto stocks, Mahindra and Mahindra rose 2.9 per cent and Bajaj Auto xended up 1.3 per cent.
Hindustan Zinc Ltd gained 1.4 per cent as zinc prices are near a three-year high, traders said.
Oil and Natural Gas Corp rose 2.5 per cent on continued hopes that the government would sell a stake in the state oil firm.
The government will decide next month on the sale of a $3 billion stake, Reuters reported on Tuesday citing a senior oil ministry official.
India's infrastructure and capital goods companies gained after last week's falls were seen as excessive, traders said.
Larsen and Toubro Ltd gained 2.3 per cent, while Bharat Heavy Electricals Ltd rose 3.5 per cent.
GMR Infrastructure Ltd gained 2.8 per cent after falling 17.7 per cent in the previous week, while GVK Power and Infrastructure Ltd, which fell 14.6 per cent last week, rose 3.6 per cent.
Jain Irrigation Systems Ltd gained 2.2 per cent after billionaire investor Shivanand Shankar Mankekar bought a 1.86-per cent stake, or 8.26 million shares, in the company during the April-June quarter, according to exchange data.
However among stocks that fell, cigarette maker ITC Ltd declined 0.8 per cent on profit-taking after rising over 9 per cent since its June lows.