Sensex closes up 35 pts

Mumbai: On Tuesday, the markets closed marginally higher hoping that easing consumer inflation, data due on Wednesday, may help for pave the way for lower interest rates.

Also the falling crude prices are likely to help lower the fiscal deficit, thus improving investor sentiment.

Sensex gained 35 points by closing at 27,910 and Nifty ended up 18 points at 8,363. The broader markets outperformed with mid and smallcap index gaining 0.7 per cent and 0.2 per cent respectively.

The markets gained with HDFC, ICICI Bank, RIL, Axis Bank and M&M reporting higher performance. While Nifty closed above its crucial psychological level of 8,350 being supported by banks, auto, realty and capital goods stocks.

The major gainers: Mahindra & Mahindra, up 2.35 per cent at Rs 1260.65; Tata Steel, up 1.84 per cent at Rs 479.70; GAIL, up 1.63 per cent at Rs 488.10; and Axis Bank, up 1.42 per cent at Rs 466.80.

The major losers: BHEL, down 2.41 per cent at Rs 245.05; ITC, down 1.91 per cent at Rs 363.75; Bharti Airtel, down 1.43 per cent at Rs 384.70; and Infosys, down 1.09 per cent at Rs 4,124.55.

Key data to drive mkt
Nifty traded in a narrow range on Monday and closed at the upper end of the range suggesting further bullishness. But it all depends on the key statistical figures to be released i.e. IIP, and Inflation numbers. If it breaks out on the upper side, Nifty could go up to 8500/8550. Short term trend continues to remain positive and stop loss may be continued at 8275 (on close basis). Nifty spot is expected to encounter resistance at 8400, 8440 and find support at 8320, 8275 for Wednesday. As Nifty is closing in a tight range for the last couple of day, a decisive and directional move is expected in a day or two. While global cues and funds flow broadly guides the stock movement basing on the present conditions, the market may be expected to witness zigzag movements. – Dr B Amaranatha Sastry