The Indian stock marked ended marginally up on Monday after a highly lackluster session. Global cues were mixed, with Asian markest mostly closing higher dispite subdued buying interest, and major European markets trading weak.
The mood was quite cautious amid persisting worries about near term economic growth following the recent demonetisation move by the government. The Reserve Bank of India's move to hike cash reserve ratio, that requires banks to maintain incremental CRR of 100% on deposits received between September 16 and November 11 for the fortnight beginning Saturday, weighed on the market. CRR, which is the portion of the deposits which banks are required to park to the RBI, stood at 4% earlier.
Banks, which saw in inflow of about Rs 3.5 lakh crore during the said period, will now have to maintain the amount as cash. They will have to pay at least 4% savings rate on these deposits, but will not get anything in return.
The BSE benchmark Sensex ended up 33.83 points or 0.13% at 26,350.17, after scaling a low of 26,183.22 and a high of 26,413.99 intraday. The Nifty50 of the National Stock Exchange settled at 8126.90, around 20 points off the day's high, gaining 12.60 points or 0.16%.
In the forex market, the rupee was trading at 68.74 against the U.S. dollar around late afternoon, down 0.3% from its previous close.
Telecom stocks, particularly Bharti Airtel, had a good outing. Power, realty, metal and FMCG stocks too found good support. Healthcare, information technology, automobile, capital goods stocks turned in a mixed performance, while bank and consumer durables stocks declined.
Bharti Airtel gained 5.2% following an announcement from the company that Bharti Airtel International (Netherlands) BV through its wholly owned subsidiary has completed the acquistion of Econet Wireless' entire 4.2% stake in Airtel Nigeria. Following this, Bharti Airtel's overall holding in Airtel Nigeria has increased to 83.25%. Bharti Infratel ended 2.4% up.
Among other telecom stocks, Idea Cellular and MTNL moved up 3.4% and 3.6%, respectively. Reliance Communications gained 2.2% and Tata Teleservices gained 3.5%.
ITC , Adani Ports, ONGC, Hero Motocorp, NTPC, Power Grid Corporation, Cipla and Bajaj Auto ended higher by 1.2% - 2.6%.
State Bank of India declined 2.8%. ICICI Bank ended 1.7% down and HDFC Bank declined marginally, while Axis Bank recorded a modest gain.
The market breadth was quite strong. Out of 2766 stocks, 1666 stocks closed higher. 923 stocks declined and 177 stocks ended flat.