Sensex advances for 3rd-day; up 107 pts

The BSE benchmark Sensex advanced for the third straight day by adding over 107 points as inflation slowed to an 11-month low, raising hopes that RBI will finally stop the round of policy rate hike for this year.
The Sensex, which had gained 450 points in last two trading sessions, rose further by 107.41 points to 19,799.19 as investors felt the slowing inflation would reduce pressure on the Reserve Bank to hike interest rate for the seventh time in its meeting on December 16.
Continuing with its trend towards moderation, inflation declined to 7.48 per cent in November, mainly boosted by lowering of pressure on certain food items. It had stood at 8.58 per cent in October.
In a similar fashion, the broad-based National Stock Exchange index Nifty rose by 36.45  points to 5,944.10, led by consumer durables, metals and capital goods.
The upsurge was mostly supported by stocks of consumer durables and metal sectors on expectations of rise in sales and improved earnings next quarter.
A firming Asian trend, as rising commodity prices boosted raw material stocks, further fuelled the uptrend. The MSCI Asia Pacific Index rose 0.7 per cent to 135.21, a highest level.
In the 30-BSE index components, 19 stocks gained while 11 others ended with losses. The front runners were Reliance Industries, Reliance Infra, Larsen and Toubro, State Bank of India, Tata Steel and Tata Motors.
The consumer durable sector index gained the most by 3.14 per cent to 6,207.39, followed by metal sector by 1.60 per cent to 16,588.42 as base-metal prices advanced to record high in overseas markets.
Tata Steel rose 2.33 per cent to Rs 645.50 as it said the prices for plate and wire rod in Europe will be increased from Jan. 1. Sterlite Industries, largest copper producer, rose by 3.46 per cent to Rs 170.65. Copper surged to a record amid speculation demand will rise after China, the world's largest consumer, refrained from raising borrowing costs.
The capital goods sector index rose by 0.93 per cent to 15,449.14 as Larsen increased 1.48 per cent to Rs 1,997.35 and Reliance Infra, builder of a mass transit system rose 2.67 per cent to Rs 833.10.

View the original article here