Sensex, Nifty Close Higher For Sixth Session In A Row: 10 Things To Know

NDTV Profit Team

18 Dec 2018, 03:38 PM IST

Gains in financial and pharma stocks pushed the indices higher

The Nifty recorded its highest closing level since October 1.
The Nifty PSU Bank, comprising scrips of state-run lenders, finished 1.3 per cent higher. Union Bank of India, Bank of India and Syndicate Bank shares at least 3 per cent higher each. Heavyweights State Bank of India and Punjab National Bank rose 1.5 per cent and 2.1 per cent respectively.
Auto stocks, led by a 2.1 per cent rise in Mahindra & Mahindra, also pushed the indices higher.
Weakness in IT stocks on strengthening of the rupee against the dollar limited the advances in the markets.
The Nifty IT, a sectoral index on the NSE comprising information technology stocks, ended nearly 1 per cent lower.
The rupee advanced by as much as 71 paise, after crude oil prices weakened to a 14-month low, to touch a nearly three-week high of 70.84 against the dollar. Appreciation in the rupee limits the profitability for exporters such as IT companies.
Analysts keenly awaited the outcome of the two-day Federal Reserve meeting due on Wednesday, in which the US central bank is widely expected to raise interest rates, which would be its fourth hike this year.
"The market was doing well, so it is a normal phenomenon that there will be some profit-booking," news agency Reuters cited RK Gupta, managing director at Taurus Asset Management, as saying.
A hike in US interest rates coupled with a potential rate cut by the Reserve Bank of India (RBI) could spur foreign outflows from India, he said.
The Nifty has advanced by 420 points, or 4 per cent, since December 10.

(With agency inputs)