Sensex, Nifty End Higher Led By Gains In Metal, Banking Shares

The S&P BSE Sensex and NSE Nifty 50 indexes rose for second straight session on Thursday led by gains in banking, auto and metal shares. Investors cheered amendments made to the Insolvency and Bankruptcy Code (IBC) to ease the insolvency resolution process and promote ease of doing business by the Union Cabinet on Wednesday, analysts said. The S&P BSE Sensex rose as much as 300 points and the Nifty 50 index briefly reclaimed important level of 12,000.

The Sensex ended 169 points or 0.4 per cent higher at 40,582 and the NSE Nifty 50 index climbed 0.5 per cent or 62 points to close at 11,972.

The development comes at a time the government seeks to strengthen the country's financial sector, marred by huge bad assets and bank frauds, to support economic growth. The IBC (Second Amendment) Bill, 2019 is likely to be introduced in the current session of the Parliament. This marks a fourth amendment to the government's flagship Insolvency and Bankruptcy Code which came into force in 2016.

Union cabinet also approved easier lending rules for shadow banks, the government said on Wednesday, to help them get more access to funds.

Sixteen of 19 sector gauges compiled by BSE ended higher led by gains in S&P BSE Metal index's 2.4 per cent gain. S&P BSE Auto, Bankex, Capital Goods, Industrials and Basic Materials sector gauges also rose between 1-1.5 per cent each.

On the other hand, S&P BSE Information Technology index was top loser, down 1.5 per cent.

Mid- and small-cap shares also witnessed buying interest as the S&P BSE MidCap index rose 0.7 per cent and S&P BSE SmallCap index advanced 0.6 per cent.

Tata Motors was top gainer in the Nifty 50 basket of shares, the stock rose 7 per cent to close at Rs 173. Yes Bank, Vedanta, Tata Steel, State Bank of India, Hindalco, JSW Steel and Cipla were also among the gainers.

On the flipside, Infosys, Tata Consultancy Services, ONGC, HCL Technologies, Bharti Airtel, Bharti Infratel, Tech Mahindra, Bajaj Auto and UltraTech Cement were among the losers.

The overall market breadth was positive as 1,372 shares ended higher while 1,046 closed lower on the BSE.