Sensex Gains 31 Points in Volatile Trading

Sensex Gains 31 Points in Volatile Trading
After two sessions of heavy losses, the BSE Sensex gained 31 points in volatile trading today to close over 19,121 amid some buying in strong stocks despite weak investor sentiment.

Smart rise in heavyweights like L&T, HDFC Bank, Bharti Airtel, ICICI Bank and TCS helped the Sensex end in the positive terrain. However, ITC, Infosys Tech, BHEL, Hero Honda, SBI and HUL restricted the gains.

The 30-share Bombay Stock Exchange index, Sensex, moved between the positive and the negative terrains in early trade and hit 3-week lows, weighed down by weak Asian stocks.

However, it regained in afternoon trade as European stocks rose in their early trading.

The BSE benchmark resumed steady but moved between 19,201.92 and 18,976.19, before ending the day at 19,121.83 -- a marginal gain of 30.66 points or 0.16 per cent from its overnight close.

The NSE 50-share Nifty also moved up by 11.65 points or 0.20 per cent to 5,740.75.

FIIs sold shares worth Rs 981.56 crore yesterday as per provisional data released by the stock exchanges.

Some technology, refinery, consumer durables and banking counters attracted good buying support while FMCG and power stocks suffered losses on profit-booking.

"The market has turned rather choppy and range-bound for the short term amid lack of fresh catalysts. At the same time, we do not see a major downside from the current levels. FII flows have slowed, which is a cause for concern," said IIFL's Amar Ambani, Head of Research (India Private Clients).

Inflation remains a big concern, he added.

"After a weak opening, the Sensex bounced back into positive territory on late buying. Declining crude oil price and reports of normal monsoon forecast helped the market to recover," said Parag Doctor, Senior Analyst (Technical) at Motilal Oswal Securities.

He added, "Mid-cap banking and Oil Market Companies witnessed fresh buying interest."

Most auto stocks fell on concerns over the possibility of further rise in interest rates that could crimp sales.

Asian stocks ended lower after credit rating agency Standard & Poor's downgraded outlook on the US sovereign rating to negative from stable. The Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan finished lower by 0.60 per cent to 1.30 per cent.

However, European shares gained in the early trade after strong earnings news lifted investor sentiment. Key indices in UK, France and Germany were up by 0.42 per cent to 0.68 pc.

Major gainers from the Sensex pack were Bharti Airtel 2.18 per cent, followed by RIL Com (2.08 %), Larsen(1.62 %), HDFC Bank (1.40 %), TCS (1.32 %), DLF (1.24 %), Wipro 1.16 %), Jaiprakash Asso (1.09 %) and Bajaj Auto (1.06 %).

However, Hero Honda fell by 4.64 per cent, followed by BHEL (2.37 %), HUL (1.20 %) and ITC (1.05 %).

Among the Sensex pack 18 scrips ended with gains while 12 scrips finished losses.

The total market breadth continued to remain negative as 1,476 stocks ended in losses, while 1,389 stocks finishing with gains.

The total turnover shot up to Rs 12,832 crore from Rs 3,391.27 crore yesterday.
Next Story : Oil Prices Extend Losses
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