Markets Settle Higher For 2nd Day

Benchmark indices Sensex and Nifty ended with gains on Wednesday, extending the previous day rally amid lower level of inflation on domestic front and better-than-expected inflation readings from the US.
     
The 30-share BSE Sensex climbed 144.61 points or 0.23 per cent to settle at 62,677.91. During the day, it jumped 301.81 points or 0.48 per cent to 62,835.11.
     
The broader NSE Nifty advanced 52.30 points or 0.28 per cent to end at 18,660.30.
     
From the Sensex pack, Tech Mahindra, Tata Steel, NTPC, IndusInd Bank, State Bank of India, Power Grid, HCL Technologies, Tata Consultancy Services and Larsen & Toubro were the major winners.
     
Nestle, Bharti Airtel, ICICI Bank, Asian Paints, Hindustan Unilever and UltraTech Cement were among the laggards.
     
"Better-than-expected inflation readings from major global economies, combined with increased appetite for IT stocks, aided the domestic market's bullishness. US CPI inflation easing to 7.1 per cent in November will lower the chances of the Fed being hawkish. Though the Fed is largely expected to raise rates by 50 basis points, their comments on future inflation and rate actions would dominate market movements," said Vinod Nair, Head of Research at Geojit Financial Services.
     
Elsewhere in Asia, equity markets in Seoul, Tokyo, Shanghai and Hong Kong ended in the positive territory.
     
Equity exchanges in Europe were trading lower in mid-session deals. The US markets had ended higher on Tuesday.
     
The wholesale price-based inflation fell to a 21-month low of 5.85 per cent in November as prices of food, fuel and manufactured items softened.
     
"All eyes will be on the US Federal Open Market Committee (FOMC) meeting on interest rate later in the day, as the outcome would set the tone for the rest of the equity markets across the globe," said Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd.
     
International oil benchmark Brent crude dipped 0.06 per cent to USD 80.63 per barrel.
     
Foreign Institutional Investors (FIIs) turned buyers as they bought shares worth Rs 619.92 crore on Tuesday, according to exchange data.