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Sensex Rallies 173 Points; Auto, Banks Hog Limelight

Mumbai: BSE benchmark Sensex on Tuesday rallied over 173 points to close at 26,899.56, snapping its two-session fall, on emergence of buying in auto, banks and metals coupled with encouraging tax collection data ahead of December quarter results.

The key indices opened on a positive note and stayed range-bound till late afternoon, while investors somewhat sidelined the mixed global cues, dip in monthly auto sales growth data, while consolidating its gains with hectic value buying and tinge short-covering.

Dismissing slowdown concerns post demonetisation as “anecdotal”, Finance Minister Arun Jaitley yesterday said tax collection has grown at a decent pace.

For the April-December period of the current fiscal, indirect tax receipts soared 25 per cent to Rs 6.30 lakh crore, which is about 81 per cent of Budget Estimates. Direct tax collection was also up 12.01 per cent at Rs 5.53 lakh crore, 65 per cent of BE.

Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said, “The pre-budget rally is having a double advantage led by good growth in tax collection creating signs that Q3 results can be better than expected, while fall in dollar is giving a speculative push in the short-term.”

Besides, the government has found that an estimated Rs 3-4 lakh crore of tax-evaded income could have been deposited during 50-day window provided to get rid of junked Rs 500/1000 notes.

The Sensex opened higher at 26,811.63 and hovered between 26,914.95 and 26,804.17 before closing at 26,899.56, showing a gain of 173.01 or 0.65 per cent.

The gauge had lost 151.69 points in previous two sessions.

The NSE 50-share Nifty also closed higher by 52.55 points, or 0.64 per cent, at 8,288.60.

Barring realty counters, buying was today witnessed across the sectors led by auto, banks, industrials, metal, capital goods and consumer durables.

The broader market, both midcap and smallcap company shares continue to outperform the headline indices.

Meanwhile, the monthly automobile sales growth rate in India slipped to a 16-year-low in December with total vehicle sales declining by 18.66 per cent affected by demonetisation.

However, Tata Motors surged 2.99 per cent after reports of its Jaguar Land Rover saw best-ever retail sales in December, up by 12 per cent from the same month of 2015.

Overseas, Asian stocks were mixed amid lacklustre closing on the Wall Street and sharp slide in oil prices overnight. In mainland China, the Shanghai Composite settled 0.3 per cent lower. In Hong Kong, the Hang Seng ended 0.83 per cent higher.

Most European stocks were trading lower amid concerns over the Italian banking system, While Britain’s stocks continued its climb to record highs, with FTSE trading higher by 0.21 per cent, while CAC france lower by 0.19 per cent and Germany Dax by 0.04 per cent. .

Source: News18