The BSE Sensex shed some gains post lower than expected industrial output data for the February and revision in January data, but immediately recovered due to positive mining and capital goods data.
January IIP revised to 1.1% as against 6.8% (provisional). Capital goods sector grew 10.6% versus negative 5.7% and mining moved up at 2.1% versus 1.2% YoY. Consumer non-durable goods growth came in at 5.1% and electricity sector grew at 8% in February. Manufacturing sector increased at 4% as against 7.5% in corresponding period.
The BSE benchmark rose 113 points to 17,312.63 led by 23 components. Meanwhile, the NSE benchmark gained 36.3 points at 5,263.15.
Shares of ICICI Bank and State Bank of India gained 1-1.5%. Index heavyweight Reliance Industries went up 0.7%.
Engineering and construction company Larsen & Toubro rose 1% and state-owned BHEL moved up 2%.
Advancing shares outnumbered declining in the ratio of 4:1.
The BSE Sensex and Nifty rose as banks extended gains from the previous session on hopes for a cut in cash reserve ratio, while Larsen & Toubro and other capital good stocks gained ahead of industrial output data later in the morning.
The BSE Sensex stayed higher with more than 100 points gains led by consistent support from 25 components. Index of industrial production data for February will be announced by the government today; CNBC-TV18 expects at 6.7% as against 6.8% in January.
The BSE Sensex spiked up more than 100 points in early trade, supported by banks, capital goods and metal stocks. Infosys, country's second largest software services provider gained 0.3% ahead of Q4 earnings tomorrow, which are expected to be lower.
READ MORE ON Sensex off day's high post Feb IIP at 4.1%
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