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Gains in IT, energy, metal and infrastructure stocks supported the gainsDomestic 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. Gains in IT, energy, metal and infrastructure stocks supported the gains, however losses in financial and pharmaceutical shares limited the upside.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. The Nifty Bank index - which tracks stocks of 12 major lenders in the country - ended 0.93 per cent lower, after the Supreme Court postponed a hearing to Wednesday in the matter of waiving "interest on interest" on loans up to Rs 2 crore, frozen during a six-month moratorium granted because of the coronavirus crisis.The outcome of the case could have far-reaching consequences not only for millions of borrowers, but also for banks.Finance Minister Nirmala Sitharaman on Monday announced plans to stimulate consumer demand, including advance payment of a part of the wages of central government employees during the festival season.
To push demand, the government will also allow its employees to spend tax-exempt travel allowances on goods and services.The Nifty Infrastructure index ended 0.26 per cent higher, having risen as much as 1 per cent during the session, 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.Analysts say the markets are likely to undergo some consolidation in the near term. "Markets may consolidate due to below-than-anticipated stimulus package and the large part of the positive Q2 results announced till date is well factored in the prices," Vinod Nair, head of research at Geojit Financial Services, told TheIndianSubcontinent."The momentum may reverse into a narrow range in the near term, while the undercurrent of the rally is still positive and a break-up is likely based on the continuity of positive results, more fiscal measures in the future and developments in global market," he added.
