Indian stocks rallied for the third consecutive day today after the Reserve Bank of India (RBI) cut its key lending rate or the repo rate by 25 basis points to a six-year low of 6.25%, from 6.5% earlier. The RBI Governor, Urjit R. Patel said in the policy review that global growth has been slowing more than anticipated through 2016 so far, with weak investment and trade damping aggregate demand. Coming back to domestic action, oil & gas stocks staged a strong rally as is reflected in the gain of over 2% today in the BSE oil & gas index.The BSE telecom index was up 1.3% in today’s trade. Realty, utilities, IT, finance and banking indices were up 1% each and the pharma index was up by 0.5%. On the other hand, capital goods and consumer discretionary stocks were among the major losers. Nifty closed with a gain of 31 points at 8,769, while BSE Sensex ended with a gain of 91 points at 28,335.
On the global front, Asian stocks traded firm with the Hong Kong’s Hang Seng advancing 0.82% and China’s Shanghai Composite too ending marginally higher.
In Europe, the FTSE 100 and DAX have gained 1% each, while the CAC 40 is up 0.60%.
Amtek Auto rallied 7.2% to Rs.48.45 on the BSE after Mahindra CIE Automotive was interested in buying the assets of the debt-ridden auto component maker.
Majesco climbed 4% after the company announced a five-year partnership with IBM to jointly offer a new cognitive, cloud based platform to help insurance carriers worldwide to create new services on IBM Cloud.
HPL Electric shares got listed on the NSE at a discount, ie at Rs.190 to an issue price of Rs.202. The stock ended at Rs.189.05, lower by Rs.12.95 or 6.41% to its issue price.
Piramal Enterprises slipped 1%. SEBI has fined Piramal Enterprises Ltd and its promoters – Ajay G. Piramal, Swati A. Piramal, Nandini Piramal and N. Santhanam – for violating insider trading norms while selling its healthcare business to Abbott Laboratories Ltd in May 2010.
Wockhardt rallied 3% after the pharma company said the US health regulator has excluded Ceftriazone Sodium from import alerts issued earlier against its active pharmaceutical ingredient manufacturing facility at Ankleshwar.
Hero MotoCorp inched up 0.24% on the BSE. The company reported an 11.24% increase in sales at 6,74,961 units in September.
The rupee was trading up by 5 paise at 66.53 per US dollar.
Out of 1,406 stocks traded on the NSE, 574 declined and 777 advanced today.
Top 5 Nifty Gainers: Asian Paints (1.91%), Hind. Unilever (1.40%), SBI (1.33%), Tata Motors (1.12%) and Maruti Suzuki (0.91%)
Top 5 Nifty Losers: ONGC (-1.37%), Axis Bank (-1.03%), M&M (-0.97%), Wipro (-0.91%) and Infosys Ltd (-0.91%)
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