New Delhi: After a strong start, the markets managed to end in green, though near the lowest point of the day. Cement, energy, tea, pharma, bank stocks saw good buying interest. Global equity markets ended higher.
The stock markets maintained their upward march on Tuesday with the benchmark Sensex ending almost 61 points at 12,705.94 points. Mutual funds accelerated buying activity in heavyweight stocks, led by cement, banking and metal segments.
The 30 share index, Sensex, which had recorded a gain of nearly 215 points in previous trading session rose 0.48 per cent at 12,705.94 after touching session's high of 12,798.80 and a low of 12,674.77 points.
In similar fashion, the Nifty index on the wide-based National Stock Exchange, also ended 18.70 points up at 3,697.60. It moved between 3,725.00 and 3,676.65 points during the session.
Stocks of cement manufacturers were back in demand after reports that the government might offer a five-year tax break for setting up of new cement plants.
Major gainers in the cement segment were ACC, Grasim Industries, Ultratech Cement, Madras Cement and Mangalam Cement.
A decrease in crude prices (trading below $ 56) impacted stocks like HPCL, BPCL and Jet Airways did well. The BSE Midcap Index ended at 5,331.39 up 44.72 points. The BSE Smallcap Index ended at 6,355.22 up 20.15 points.
Marketmen say it is about time that the markets became stable after a continuous fall. "The Indian markets have been the worst performing emerging markets in the last three months - not because the economy has been doing badly but because of certain perceptions that India had to bear the brunt of. The valuations are also stretched," investment analyst PN Vijay was quoted by moneycontrol.com.
He said, "Inflation will come down to 5-5.5 in the next one month which will put us into 8.5-9 per cent growth rate, given the investment cycle.”
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