Sensex Rises For Fifth Day On Budget Hopes

(RTTNews) - Indian shares rose for a fifth consecutive session on Monday on hopes the Modi government will accelerate economic reforms in the coming Union Budget 2015-16 to be unveiled on February 28.

Also, falling oil prices helped to shrink India's trade deficit to an 11-month low in January and the wholesale price index (WPI) inflation for January 2015 came with a deflationary print of 0.39 percent, giving RBI more room for further rate cuts.

Economists expect the central bank to wait for the presentation of the Union budget and look at the fiscal consolidation plan of the government before reducing borrowing costs further.

After gaining 231 points early in the session, the benchmark BSE Sensex pared most of the gains to end the session up 40.95 points or 0.14 percent at 29,135.88. The broader CNX Nifty index also ended off its day's highs at 8.809.35, up 3.85 points or 0.04 percent from its previous close.

ITC jumped 3 percent, extending Friday's rally, after it agreed to buy 'Savlon' and 'Shower To Shower' brands from Johnson & Johnson for an undisclosed amount. Rival Hindustan Unilever gained 1.6 percent.

Tata Motors, India's largest automobile company by revenues, rose 1.5 percent and Mahindra & Mahindra advanced 1.3 percent.

Suzlon Energy shares were locked at the 20 percent upper circuit limit. Dilip Sanghvi, the founder of Sun Pharmaceutical Industries, has agreed to buy a 23 percent stake in the wind turbine maker for about $290 million.

Realty firm Unitech soared over 10 percent and Housing Development and Infrastructure jumped 6 percent on solid Q3 results. Construction firm Madhucon Projects climbed 13.4 percent on robust Q3 earnings.

Rajesh Exports rallied 5.1 percent after its quarterly profit jumped 87 percent from a year earlier. MBL Infrastructure rose 2 percent after bagging a new order worth Rs.234.44 crore.

ONGC edged up 0.2 percent even as the state-owned oil explorer reported a 50 percent decline in quarterly net profit, hit by lower sales amid oil price rout.

HDFC Bank ended on a flat note as the private sector lender reported a 20.2 percent rise in Q3 net profit on the back of a strong increase in interest income.

Sun Pharma dropped 2.7 percent after the country's largest drugmaker reported a 7 percent year-over-year decline in its consolidated net profit for the third quarter ended December.

Reliance Industries declined 1.6 percent on reports that Canada's Niko Resources plans to sell its 10 percent stake in Reliance's flagship offshore KG-D6 gas block.

Infosys shares fell 0.8 percent. In its first major acquisition under Vishal Sikka, the country's second-largest software services firm said it would buy U.S.-based automation technology company Panaya Inc. for an enterprise value of $200 million.

On the global front, Asian stocks rose broadly following a record close on Wall Street Friday. Oil prices held steady and a report showed Japan's economy has recovered from recession in the last quarter of 2014, helping to keep underlying sentiment positive ahead of the upcoming Chinese New Year holidays.

The European markets opened slightly lower as investors treaded cautiously before a crucial meeting of eurozone finance ministers in Brussels, where EU officials will try to find common ground with Greece's new leftist government in order to thrash out a short-term deal to keep the country afloat.