Indian equities close inches higher on global cues, healthy macro-data

Mumbai, July 5 (IANS) Despite trading with caution over geo-political concerns, the Indian equity markets trimmed some losses on the back of healthy services sector data, positive global indices and inflow of foreign funds, to close marginally higher on Wednesday.

In another development during the day's trade, industrialist Mukesh Ambani's Reliance Industries (RIL) overtook Tata Group's multinational IT company Tata Consultancy Services (TCS) in terms of market capitalisation.

The company's shares closed higher by 1.20 per cent at Rs 1,439.80 per share on the BSE, which lifted its market capitalisation to Rs 468,160.44 crore.

The wider Nifty of the National Stock Exchange (NSE) was up by 24.30 points or 0.25 per cent to close at 9,637.60 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,272.72 points, closed the day's trade at 31,245.56 points -- up 35.77 points, or 0.11 per cent, from its previous close at 31,209.79 points.

It touched a high of 31,284.64 points and a low of 31,177.78 points during intra-day trade.

The BSE market breadth was bullish -- with 1,697 advances and 978 declines.

The broader market indices outperformed the Sensex. The S&P BSE mid-cap was up by 0.97 per cent and the small-cap index by 1.12 per cent.

"Markets ended with modest gains on Wednesday as it continued to trade in a narrow range and consolidate. A private survey showing India's service sector expanding at its fastest pace in eight months in June and gains in most global stock markets provided support to the Sensex/Nifty," Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.

The seasonally adjusted Nikkei India Services PMI Business Activity Index released during market hours registered a higher rate of expansion at 53.1 in June from 52.2 in May.

"The gains were, however, muted amid geopolitical concerns after North Korea launched a long-range ballistic missile. Major Asian markets have ended on a positive note, barring the Jakarta index, while European indices like FTSE 100, CAC 40 and DAX traded higher," Jasani added.

On the currency front, the rupee weakenened by five paise to 64.78-79 to a US dollar from its previous close at 64.73-74.

In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) purchased stocks worth Rs 227.57 crore while domestic institutional investors (DIIs) bought scrips worth Rs 75.36 crore.

"Market turnover was on the lower side compared to Tuesday. Auto, metal, oil and gas and healthcare sectors ended in the green, while defensive sector FMCG and IT ended in the red," said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

"Lupin gained intra-day after the company said it introduces generic vigamox ophthalmic solutions in US. RIL shares were in news today on reports of its subsidiary RIL Jio likely to launch 4G VOLTE phone at Rs 500," he added.

Sector-wise, the S&P BSE automobile index rose by 167.77 points, the banking index by 167.73 points and the metal index by 143.93 points.

On the other hand, the S&P BSE IT index fell by 66.65 points, the FMCG index by 49.36 points and the Teck (technology, media and entertainment) index by 20.56 points.

Major Sensex gainers on Wednesday were: Lupin, up 3.82 per cent at Rs 1,084.05; Mahindra and Mahindra, up 2.24 per cent at Rs 1,385.05; ONGC, up 1.69 per cent at Rs 162.65; Asian Paints, up 1.58 per cent at Rs 1,126.30; and Reliance Industries, up 1.20 per cent at Rs 1,439.80.

Major Sensex losers were: ITC, down 1.79 per cent at Rs 331.05; Infosys, down 0.98 per cent at Rs 951.05; Wipro, down 0.90 per cent at Rs 257.55; HDFC, down 0.67 at Rs 1,629.40; and Bharti Airtel, down 0.46 per cent at Rs 377.55.