Mumbai, India (BBN) – Shares rose for a second consecutive session on Tuesday, as banking shares such as HDFC Bank gained ahead of results later in the day, while sentiment got a boost on optimism ahead of the annual budget to be unveiled next week.
The Supreme Court on Monday rejected a petition to delay the Union Budget, which Finance Minister Arun Jaitley is scheduled to deliver on February 1, dismissing concerns about potential giveaways ahead of critical state polls, reports The Hindu business Line.
Analysts are hoping for a Budget that delivers some incentives to support an economy that has been hit by India’s shock move to ban higher-value banknotes.
“Financials have underperformed for sometime because of concerns on growth and outlook after demonetisation,” said Neeraj Dewan, director at Quantum Securities.
“There can be also be some pre-budget buying happening in the market,” Dewan added.
At about 12:45pm, the broader NSE index was up 0.56 per cent or 46.85 points at 8,438.35, with only 10 stocks trading in the red.
The benchmark BSE index was 0.48 per cent or 131.32 points higher at 27,248.66.
Banks were among the gainers, with HDFC Bank up nearly 1 percent and Kotak Mahindra Bank, which reports earnings on Wednesday, rising 0.80 per cent.
IT stocks however fell, with Infosys Ltd and HCL Technologies Ltd down more than 1 per cent each amid worries U.S. President Donald Trump’s protectionist stance would adversely impact global exporters.
Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal on Monday, distancing America from its Asian allies, as China’s influence in the region rises.
MOIL Ltd fell as much as 3.9 pct to its lowest since Jan 3 after the manganese ore miner said the government would sell 10 per cent stake in the company.
Sectoral indices led by power, capital goods, banking, oil and gas, and metal stocks were in the green, rising by up to 1.25 per cent.
Early today, HCL Technologies reported a 7.8 per cent rise in consolidated net profit at Rs 2,070 crore for the third quarter ended December 2016.
Brokers said increased buying in select stocks coupled with covering—up of outstanding short positions ahead of the January month derivatives expiry had a positive impact.