Consumer durable, auto, FMCG indices gain after RBI policy
Shares in consumer durable, auto and FMCG indices advanced between 1-2% post the policy announcement by the Reserve Bank of India.
The RBI kept repo and reverse repo rates unchanged to arrest slowdown in Asia's third largest economy.
However, the BSE Sensex pared some of the intraday gains, post the policy announcement.
“The status quo policy of RBI was in line with the market expectations. The Markets overreacted before the RBI policy as Nifty made a high of 4815 levels earlier in the day, and soon after the announcement we have witnessed some selling pressure,” said Senior Technical Analyst, Manager Advisory, LKP Securities.
“But I think that the crucial support for the Nifty is 4700 on closing basis. Markets have managed to absorb a set of important events at that level, and now if the global situation improves for a short term period, we might witness some rally, otherwise the trend continues to remain fairly bearish at this point,” added Kunal.
The Bombay Stock Exchange (BSE) Consumer Durable index was the largest gainer among sectoral indices, up 118 points or 2.2 followed by auto, FMCG and oil & gas indices which were up 2.1%, 1.3% and 1.7% respectively.
Titan Industries is the top gainer from consumer durable pack followed by Videocon Industries, Bajaj Electricals, VIP Industries and C Mahendra Exports.
Among individual stocks from the auto sector, Tata Motors, Bajaj Auto, Mahindra & Mahindra rose more than 2%. Godrej Industries, United Breweries and ITC marked gainers in the FMCG space, up 1-2% each.
At 01:00 p.m., the benchmark index was trading 1.1% higher at 16, 015.74 led by gains in Infosys (up 1.6%), ITC (up 1.7%) and Bharti Airtel (up 3.7%).
BSE Oil & gas index surged 1.7% led by gains in Gail India, ONGC, Reliance Industries, IOC, Cairn India and BPCL. Share of these companies were trading higher in the range of 2-1%.