Nifty PSU Bank index gained 1% led by Allahabad Bank, Andhra Bank, Syndicate Bank and IDBI Bank
Benchmark indices ended moderately higher after a choppy session as data released by the commerce ministry showed that India's May wholesale inflation slipped to 2.17% as compared to 3.85% in April and - 0.90% in the similar period of the previous year.
Near-certain rate hike in Federal Reserve’s however kept the gains in check as investors stayed on the fence awaiting clarity on the its future path for US policy.
The widely expected quarter-point interest rate hike will take the Fed funds target rate above 1 percent for the first time since the immediate aftermath of the collapse of Lehman Brothers in 2008.
The S&P BSE Sensex settled the day at 31,156, up 52 points, while the broader Nifty50 ended at 9,614, up 7 points.
In the broader market, the S&P BSE Midcap was flat while S&P BSE Smallcap gained 0.4%.
Buzzing stocks
Reliance Industries, Dr Reddy’s, ICICI Bank and HUL gained the most on BSE Sensex while Cipla, ITC, HDFC and Wipro lost the most in the index.
Reliance Industries rose over 3% becoming the top gainer on BSE Sensex after the company's telecom subsidiary outperformed its competitors in April 2017 by adding about 3.87 million new users to reach a consumer base of 112.55 million.
Dr Reddy’s Laboratories gained 1.4% after the company said it has received Establishment Inspection Report (EIR) from the US health regulator for its Miryalaguda plant.
Nifty PSU Bank index gained nearly 1% after the Reserve Bank of India identified 12 largest loan defaulters that can be immediately taken up under the Insolvency and Bankruptcy Code (IBC).
Allahabad Bank, Andhra Bank, Syndicate Bank, IDBI Bank and Union Bank of India gained between 2-7%.
Among losers, Wipro lost 1.2% after it said it has invested $809,690 (about Rs 5.12 crore) in management and IT consulting firm Drivestream. The cash consideration will see Wipro acquiring 19,679 preferred stocks and 27,865 common stocks, Wipro said in a BSE filing.
Global markets
Stocks rose on Wednesday, but worries about stretched valuations and caution before the US Federal Reserve policy outcome kept the gains capped, while the dollar steadied against a basket of major currencies.
Optimism about the global economy also underpinned European equities where the pan-European STOXX 600 was up 0.6%, led by industrials and financials. Stocks on Wall Street hit a record high overnight.
The MSCI All-Country World index was up 0.1% and has remained stuck in a tight range this month. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1% while Japan's Nikkei was down 0.08%.
Photograph: Reuters
