Sensex trade flat; metal stocks gain

Mumbai, Jan 28: A benchmark index of Indian equities markets was trading flat in Tuesday’s late afternoon session – up 3.79 points or 0.02 percent – after the apex bank hiked key policy rates by 0.25 percent to tame inflation.

The markets were led by interest sensitive stocks like banks, capital goods and consumer durables which paired their initial losses.

The bearish market sentiments was triggered by the Reserve Bank of India’s (RBI) move to hike key interest rates in its monetary policy review.

The move could make home, automobile and other loans costlier and further dampen economic growth. Earlier, RBI had warned against reining in high inflation levels.

The 30-scrip S&P Sensex of the Bombay Stock Exchange (BSE), which opened at 20,721,17 points, was trading at 20,711.24 points, up 3.79 points or 0.02 percent around 2.15 p.m. from its previous day’s close at 20,707.45 points.

The Sensex touched a high of 20,795.35 points and a low of 20,554.28 intra-day.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading 0.05 points or 3.15 percent up at 6,132.70 points.

Stocks like metal, automobile, capital goods gained, while banks, fast moving consumer durables (FMCG), consumer durables were flat.

However, heavy selling pressure was observed in information technology, technology entertainment and media (TECK) and healthcare stocks.

The S&P BSE metal index grew by 164.29 points followed by automobile index which gained 155.37 points, capital goods index, up 70.03 points.

Bank index was trading flat at 0.37 points up, FMCG index gained 6.07 points and consumer durables index grew by 26.73 points.

The S&P BSE IT index declined 107.73 points, TECk index was down 56.66 points and healthcare index was lower by 46.76 points.

IANS