Sensex reclaims 32K

Stocks close at 1-month high on macro data cue

The Indian market brimmed with confidence, as the benchmark BSE Sensex breached the 32,000-mark again by climbing 276 points, or 0.87 per cent, on Tuesday, to bring up a nearly onemonth closing high, with the focus clearly on key macroeconomic data.

The NSE’s Nifty scaled to a high at 10,097.5 before closing up 87 points, or 0.87 per cent, 10,093.05, the highest close since August 1 when it had settled at 10,114.6. With this, both the benchmark indices extended their gains for a fourth session in a row.

On Tuesday, it was revealed the Index of Industrial production (IIP) grew 1.2 per cent in July from 4.5 per cent a year ago, bearing the brunt of a dismal show of the manufacturing sector, especially that of capital goods. The Consumer Price Index-based inflation rose to a five-month high of 3.36 per cent in August, from 2.36 per cent in the previous month, as food items, particularly vegetables, turned inflationary from the price fall seen in the previous three months.

Risk aversion was clearly relegated to the background after a rally in global markets, as US stocks hit a fresh record high on Monday on easing North Korea tension and the impact of Hurricane Irma on the US.

The Sensex stayed above the baseline throughout the session before settling at 32,158.7 on a continuous inflow of funds by domestic institutional investors (DIIs). This is the highest closing since August 7 when the figure stood at 32,273.7.

DIIs took shares worth a net ~877.37 crore, while foreign portfolio investors sold equities of ~392.52 crore on Monday, provisional data showed.

Tata Steel broke free, topping the gainers’ chart, rallying 3.30 per cent to hit an over six-year high of ~683.15. Sun Pharmaceutical Industries, Tata Motors, Hindustan Unilever and M&M landed on the winning side.