Mumbai, India (BBN)-The Nifty and the Sensex ended higher by nearly 0.5 per cent led by auto, metal and FMCG stocks amid firm European cues.
Sentiment remained subdued ahead of a central bank policy review on Wednesday and as a slump in the euro hit broader Asian markets, reports The Hindu Business Line.
Sentiment globally was hit after Italian Prime Minister Matteo Renzi said he would resign following heavy defeat on constitutional referendum, raising political uncertainty in the euro zone.
The 30-share BSE index Sensex ended higher by 118.44 points or 0.45 per cent at 26,349.10 and the 50-share NSE index Nifty was up 41.95 points or 0.52 per cent at 8,128.75.
Among BSE sectoral indices, auto index gained the most by 1.92 per cent, metal 1.52 per cent, FMCG 1.36 per cent and consumer durables 1.12 per cent.
On the other hand, IT index was down 0.74 per cent, TECk 0.36 per cent, oil & gas 0.18 per cent and capital goods 0.16 per cent.
Top five Sensex gainers were Asian Paints (+3.58%), M&M (+3.29%), Lupin (+3.22%), Bharti Airtel (+2.73%) and Maruti (+2.68%), while the major losers were HDFC (-1.73%), (-1.68%), GAIL (-1.09%), Sun Pharma (-0.89%) and Wipro (-0.79%).
The central bank is expected to cut interest rates at its monetary policy meeting after Prime Minister Narendra Modi’s currency crackdown rattled the economy, according to a Reuters poll.
“The RBI (Reserve Bank of India) is expected to cut rates largely because they have got sufficient amount of liquidity into the system,” said Deven Choksey, managing director, KR Choksey Securities.
“Unless they (RBI) bring down the rate of interest, the credit offtake will remain sluggish,” he said, adding it would be more appropriate to cut the rate sharply.
The euro was under the gun on Monday, skidding to a 20-month low after Italian Prime Minister Matteo Renzi said he would resign following a stinging defeat on constitutional reform that could destabilise the country’s shaky banking system.
The single currency, which slumped to as low as $1.0505 in early Asian trade after opening at around $1.0685, pulled back up to $1.0562.