Sensex Firm, Nifty Eyes 8,200; IT & Metal Stocks Lead the Charge

Markets gave up initial gains after a strong start.

(Photo: Reuters)

Domestic equity markets gave up gains made at the start of the session but still traded in the green for the fourth straight session. The Sensex opened with a 100-point gain but pulled back a bit while the 50-stock Nifty held above the 8,150 mark.

IT and metal stocks led the charge on Dalal Street.

The market breadth remained positive as about 1060 shares advanced against 762 declining shares on Bombay Stock Exchange.

Hindalco shot up 11 percent after stellar performance in Q4. Profit more than doubled to Rs 356.3 crore during the quarter from Rs 159.5 crore year-on-year with operating profit margin rising 450 basis points at 13.5 percent.

Coal India also gained 4.5 percent as the board of directors approved revision of coal prices by approximately 6.29 percent over current price.

Rupee Snaps Winning Streak

The rupee weakened 25 paise to 67.28 against the dollar in early trade following month-end demand for the American currency from importers and banks. Forex dealers said the US dollar’s gain against other currencies overseas also gave the rupee the sinking feeling. However, a higher opening of the domestic equity market capped the losses.

The rupee had appreciated 14 paise against the American currency to end at a one-week high of 67.03 on Friday on the back of robust dollar inflows in equities.

Asian Shares Slip After Yellen’s Rate Hike Remarks

Asian shares slipped while the dollar marked fresh highs after Federal Reserve Chair Janet Yellen suggested that an interest rate hike could be around the corner.

The Fed should raise interest rates “in the coming months” if economic growth picks up and the labour market continues to improve, Yellen said on Friday.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2 percent.

But Japan’s Nikkei stock index added 0.9 percent, as the yen weakened and expectations rose that the government would delay a sales tax hike scheduled for April next year.