Indian benchmark indices opened higher on Tuesday, tracking gains in Asian shares, as equity investors prepared for an expected US interest rate cut this week. However, gains were capped amid weaker Q1 results and continued selling by the overseas investors.
At 9:20 am, the Sensex was trading 128 points higher at 37,815, while the broader Nifty50 index was ruling 34 points higher to end at 11,223.
Grasim, Zee, Bajaj Finance, ICICI Bank, and JSW Steel were top gainers on the Nifty50, while Indiabulls Housing, GAIL, Dr Reddy's Hero MotoCorp, and Hindalco led the losses.
All the sectoral indices, except the Nifty IT, opened in the green. The Nifty Pharma index advanced the most, up 0.6 percent, followed by Nifty Bank, up 0.5 percent. Other banking indices also rose around 0.5 percent, while, Nifty Media rose 0.6 percent. Meanwhile, Nifty IT fell 0.2 percent.
Coffee Day Enterprises shares fell 20 percent after VG Siddhartha, the founder of Cafe Coffee Day reportedly went missing
last evening. In a letter written to the Cafe Coffee Day board, he said that he failed to create the right profitable business model despite taking best efforts.
Globally, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.35 percent. The Shanghai Composite Index rose 0.7 percent. Japan’s Nikkei was up 0.7 percent, showing a little reaction after the Bank of Japan left monetary policy unchanged as expected.