Indices trade in range, Nifty above 10,500; metal stocks gain

The domestic indices were trading in range on Tuesday, taking cues from their global counterparts.

Among sectoral indices, the Nifty Metal index was nearly 1% up led by a rise in the shares of Jindal Stainless (Hisar) and Hindalco Industries.

That apart, investor sentiments are likely to be positive during the day following the forecast of a normal monsoon this year by the India Meteorological Department (IMD).

Releasing its first forecast for the southwest monsoon, the IMD said rainfall in June-September was projected at 97 per cent of the long period average (LPA), with a model error of plus and minus 5 per cent.

The monsoon delivers about 70 per cent of India’s annual rainfall and determines the yield of key crops such as rice, wheat, sugarcane and oilseeds such as soybeans. The farm sector accounts for about 15 per cent of India’s $2 trillion economy, but employs more than half of the country’s 1.3 billion people.

If monsoon rains lift farm output, it can boost demand for consumer goods as it raises incomes of rural people.

GLOBAL MARKETS

Asia stocks rose modestly on Tuesday following data showing China’s economy grew a little faster than expected in the first quarter.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.05 per cent. South Korea’s KOSPI dipped 0.1 per cent and Hong Kong’s Hang Seng gained 0.15 per cent. Shanghai rose 0.15 per cent and Japan’s Nikkei was flat.business-standard


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