The S-P BSE Sensex and NSE Nifty 50 indexes rose for third straight session a day after the Reserve Bank of India decided to payout Rs 1.76 lakh crore from its reserves and surplus to the central government.
The payout comes at a time the government strives to tackle a nearly five-year low economic growth with lakhs of estimated job cuts across sectors, and defend its ambitious target of containing fiscal deficit at 3.3 per cent of the GDP.
Economists say the payout will likely help the government meet its tax revenue shortfall and fund a higher expenditure.The Sensex rose 147 points or 0.4 per cent to close at 37,641 and the NSE Nifty 50 index climbed 47 points or 0.4 per cent to settle at 11,105.Following the RBI's move to transfer funds to the central government, the government bonds edged up to their highest in three weeks while the rupee rose from its lowest level in nine months.The benchmark 10-year bond yield was at 6.44 per cent, down 4 basis points (bps) on the day after having earlier dropped to a low of 6.35 per cent, its lowest since August 7.The partially convertible rupee was trading at 71.81/82 per dollar versus its previous close of 72.03 but still off the session highs of 71.70.Eight of 11 sector gauges compiled by National Stock Exchange ended higher led by the Nifty PSU Bank index's 2.5 per cent gain.Nifty Auto, realty and metal indexes also rose between 1.14 and 2.1 per cent each.On the other hand, Nifty Information Technology index was top loser, down 1.3 per cent.Mid- and small-cap shares outperformed their larger peers as the Nifty Midcap 100 index rose 0.7 per cent and Nifty Smallcap 100 index climbed 1.8 per cent.Tata Motors was top gainer in the Nifty 50 basket of shares, the stock rose 9 per cent to close at Rs 120.45.
Britannia Industries, Tata Steel, Yes Bank, NTPC, GAIL India, Eicher Motors and IndusInd Bank were also among the gainers.On the flipside, Bharti Airtel, Indiabulls Housing Finance, Tech Mahindra, Infosys, Grasim Industries, Tata Consultancy Services, Bajaj Finserv and Dr.
Reddy's Labs were among the losers.The overall market breadth favoured buyers as 1,280 shares closed higher while a little over 500 shares closed lower on the NSE.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India.
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.