Sensex, Nifty End Marginally Higher As IT, Energy Shares Rise
Stock Market News: The Nifty Infrastructure index rose nearly 1%
Domestic share markets closed marginally higher after a volatile session on Tuesday, managing to extend gains to a ninth straight session. The S&P BSE Sensex index traded in a range of more than 300 points, between 40,461.97 and 40,786.82 during the session, following a muted start. The broader NSE Nifty 50 benchmark also fluctuated between gains and losses, between 11,988.20 and 11,888.90, compared to its previous close of 11,930.95.
The Sensex ended 31.71 points - or 0.08 per cent - higher at 40,625.51, and the Nifty settled at 11,934.50, up 3.55 points from its previous close.
To push demand, the government will also allow its employees to spend tax-exempt travel allowances on goods and services, Finance Minister Nirmala Sitharaman told a news briefing on Monday.
The Nifty Infrastructure index rose nearly 1 per cent and was the top gainer among sub-indices as UltraTech Cement added 3.2 per cent and Shree Cement 2.5 per cent.
Infrastructure stocks rose a day after the government announced a plan to spend an additional Rs 25,000 crore on roads, ports and defence projects, and provide interest-free loans to states to strengthen the sector.
However, some analysts said the rise in stocks was likely to be short-lived.
"There is a lift in sentiment for infra stocks, but the requirement is much higher and these moves are very temporary," said Rahul Sharma, market strategist and head of research at Equity99 markets.
The Nifty IT index rose for the 12th straight session as investors, boosted by strong results and a buyback from Tata Consultancy Services, expected good numbers from Infosys, which is set to report on Wednesday.
Shares of smaller rival Wipro, which will report results later in the day, fell 0.2 per cent after rising 5.5 per cent since it announced a buyback plan.
Meanwhile, hopes of more interest rate cuts to boost the economy were dashed as the country's retail inflation picked up in September to 7.34 per cent, with food prices surging ahead of the festival season.