Indian Stocks Gain On Rate Cut Hopes; Titan Jumps Most In Over 8 Years

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Closing Bell

Indian shares managed to shrug off weak global cues, with key equity benchmarks gaining on hopes of an interest-rate cut from the central bank in its policy decision due Wednesday.

The S&P BSE Sensex rose 0.1 percent to 31,320 while the NSE Nifty climbed 0.2 percent 9,675. The market breadth was tilted in favour of the buyers. About 2 stocks advanced, against every 1 that declined.

The Nifty I.T. index led the nine sectoral gauges higher, while Nifty Metal and Nifty Pharma index were the only two losers. The benchmark 10-year yield held near the lowest level since April, driven by expectations the bank will soften its hawkish stance.

Indian Stocks Gain On Rate Cut Hopes; Titan Jumps Most In Over 8 Years

The Nifty range for now seems to be between 9,780 on the upside and 9,630 on the downside, with 9,500 being a major support level, said Dhaval P Vyas, Founder & Chief Market Analyst,

Vyas said investors should stick to stock specific approach. “One should also look at churning their portfolio from time-to-time,” he told BloombergQuint by phone. He is bullish on the NBFC companies, especially the housing finance stocks. Also, he likes real estate stocks. He also has a contrarian call on Tata Consultancy Services.

Retail Stocks Rally On GST Boost

Shares of the retail companies rallied anywhere between 19 and 2 percent after the final GST rates announced on footwear and apparel were closer to the current tax structure.

The universal tax structure is expected to help increase compliance, thereby favouring organised retail players. GST is also expected to make value fashion (priced below Rs 1,000) retailers more indirect tax-efficient.

Similarly, analysts said it can accelerate market share gains in low-ticket-size segment as unorganised lose advantage of low tax compliance.

“We will try to pass it on the benefit to customer through price cuts, we will try to see that the customer get the better products for better prices,” Lalit Agarwal, CMD of V-Mart Retail Ltd. told BloombergQuint.

Top Movers

  • Future Retail (+5.2%)
  • Aditya Birla Fashion (+4.2%)
  • Trent (+1.7%)
  • Future Lifestyle Fashions (+6.4%)
  • Shoppers Stop (+4.1%)
  • V-Mart (+13%)
  • Mandhana Retail (+19%)

Metal Stocks Continue To Drag

Indian Stocks Gain On Rate Cut Hopes; Titan Jumps Most In Over 8 Years

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