Indian Stocks Post Modest Gains In Early Trades
(RTTNews) - The Indian market briefly slipped into negative territory Monday morning after opening marginally higher, but recovered swiftly and gained in strength amid stock specific activity.
Despite weakness in global markets, Indian stocks have moved higher this morning, with traders speculating the Reserve Bank of India will announce a rate cut later this week, after government data last Friday showed the country's economic growth to have slowed to a five-year low in the fourth quarter of 2018-19.
The benchmark BSE Sensex, which rose to a high of 39,920.93 after edging down to 39,711.02 earlier, was up 146.10 points, or 0.37%, at 39,860.30.
The National Stock Exchange's Nifty50 was up 38.45 points, or 0.32%, at 11,961.25, recovering from a low of 11,920.10.
In the currency market, the rupee opened higher at 69.50 a dollar, gaining 17 paise.
A couple of stocks from the automobile space rallied sharply. Bajaj Auto moved up 2% and Hero Motocorp gained about 3.5%.
Maruti Suzuki recovered after weak start and was up by about 0.3%. On Saturday, the carmaker reported a sharp 22% decline in total vehicle sales to 1.34 lakh units in May 2019 over May 2018.
Tata Motors declined by about 0.5%. The company reported a 16% drop in total vehicles sales in the month of May.
Mahindra & Mahindra reported a marginal 3% decline in total vehicle sales in May 2019, compared to the same month last year. The stock was down marginally.
Asian Paints rose 2.5% and Zee Entertainment Enterprises gained 2.1%. Britannia Industries advanced nearly 2%.
Shares of state-run oil marketing companies Indian Oil Corporation, BPCL and Hindustan Petroleum Corporation gained 1.4 to 1.7%, buoyed by falling crude oil prices.
According to the data released by the government after trading hours on Friday, India's economic growth rate slowed to five-year low of 5.8% in January-March 2018-19, weighed down by slackness in agriculture and manufacturing sectors.
The Central Statistics Office also revealed that GDP growth during the 2018-19 fiscal stood at 6.8%, lower than 7.2% in the previous year.
The Reserve Bank of India's monetary policy review is due on Thursday. Some analysts expect the central bank to cut interest rate by 25 basis points. If it does, it will the third consecutive rate cut by the central bank.
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