Sensex ends 231 points higher, Nifty closes above 12,100; Tata Motors, Bajaj Finance gain

Mumbai: Indian equity indices broke the two-day losing streak and ended in the green on Wednesday (January 29). The Sensex closed 231.80 points higher or 0.57% at 41198.66, while the Nifty ended up 73.70 points or 0.61% at 12129.50. Major gainers on the Nifty were Tata Motors, Bajaj Finance, Bharti Infratel, Nestle and Bajaj Finserv while Eicher Motors, TCS, Yes Bank, Dr Reddy’s Labs and HDFC remained top losers.

About 1268 shares advanced, 1201 shares declined, while 164 shares remained unchanged. 

During early hours on Wednesday, equity benchmark indices traded higher as investors hoped for elevated spending on infrastructure in the upcoming Union Budget to boost consumer demand and investments. 

At 10:15 am, the BSE S&P Sensex was up by 308 points to 41,275 while the Nifty 50 edged higher by 91 points at 12,147. All sectoral indices at the National Stock Exchange were in the positive terrain with Nifty metal gaining by 1.4 per cent, auto by 1 per cent and FMCG by 0.8 per cent.

Among stocks, Tata Motors advanced by 4.3 per cent to Rs 183.65 per share. Tata Steel and JSW Steel were up by 2.2 per cent each while Vedanta was up by 1.4 per cent.

Meanwhile, Asian shares erased earlier gains and slipped into negative territory as a spike in new Chinese virus cases sent Hong Kong stocks tumbling and fueled fears about the economic impact of the outbreak.

MSCI`s broadest index of Asia Pacific shares outside Japan skidded by 0.52 per cent. Hong Kong shares fell by 2.8 per cent, led by declines in financial services, real estate and consumer goods companies. But Japan`s Nikkei stock index advanced by 0.4 per cent and South Korea`s Kospi also added 0.5 per cent. Markets in China were closed for a holiday.

However, Australian shares rose 0.57%, while Japan`s Nikkei stock index advanced 0.4%, partly because investors in these markets have already had a chance to react to the virus outbreak, which has claimed more than 100 lives.

Oil futures built on gains in Asia after OPEC sources said the cartel wants to extend crude output cuts by three months to June, easing concern about excess supplies.

US stock futures rose 0.14% in Asia on Wednesday. The S&P 500 rose 1.01% on Tuesday, rebounding from its worst daily decline in four months on Monday, as shares of Apple Inc rose ahead of its fourth-quarter results.

After the market close, Apple reported better-than-expected profits for the fourth quarter and forecast revenue in the current quarter above Wall Street expectations, which lifted some Asian tech shares.

The yield on benchmark 10-year Treasury notes rose to 1.6666% versus a yield of 1.5821% on three-month Treasury bills in another sign that sentiment has stabilised. 

The yield curve briefly inverted on Tuesday when 10-year yields fell below their 3-month counterparts for the first time since October. An inverted yield curve has historically been an indicator of looming recession.

Markets in Asia are likely to be subdued before the US Federal Reserve meeting later on Wednesday. The Fed is expected to reiterate its desire to keep rates unchanged at least through this year.

(With Agency Inputs)