Sensex closes 56 points up on buying in RIL, SBI shares

Bucking weak global cues, the Sensex on Tuesday closed 56 points higher at 17440.87 on buying in Reliance Industries, SBI and ICICI Bank in the second half of trading.

Updated: Sep 04, 2012, 17:42 PM IST

Mumbai: Bucking weak global trends, Sensex on Tuesday snapped two straight days of losses and closed 56 points higher at 17,440.87 on strong buying in Reliance Industries, SBI and ICICI Bank in the second half of trading.

The BSE benchmark index, which had lost over 150 points in the previous two sessions, dropped by over 75 points in choppy trade earlier today. The index, however, recovered lost ground in the last two hours to close 56.47 points higher, or 0.32 percent over yesterday's closing.

Traders said 30-share Sensex recovered as Reliance Industries wiped off two days of losses to close today 1.87 percent higher. SBI that gained 1.25 percent and ICICI Bank which gained 1 percent provided good support, they added.

GAIL, Jindal Steel, Tata Motors and Tata Steel rose between 1.4-2.6 percent each. Realty, Oil&Gas, Power, Consumer Durable and Metal stocks attracted good buying while some IT and pharma shares ended with losses, brokers said.

Trading sentiment was also bolstered on reports the government is planning to take steps to accelerate GDP growth.

Although global slowdown is affecting India, the fundamentals of its economy are strong and the government is taking a series of steps to see it moves to a higher growth trajectory, Cabinet Secretary Ajit Kumar Seth said in Delhi.

The 50-share National Stock Exchange index Nifty rose by 20.25 points to 5,274, after dipping to day's low of 5,233.20.

Meanwhile, with the storm over coal block allocation issue refusing to subside, Parliament was paralysed for the tenth day today as BJP remained unrelenting on its demand for resignation of Prime Minister Manmohan Singh.

In Asia, barring Taiwan, indices of major countries were down. Europe was also trading weak in afternoon deals today.

The BSE Realty sector index gained the most by rising 1.59 percent, followed by BSE Oil and Gas index that gained 1.19 percent. The BSE Power index rose by 0.92 percent while the BSE Consumer Durables index inched up by 0.89 percent.

Globally, the market sentiment was tepid Tuesday as investors once again focussed on Eurozone worries after ratings agency Moody's downgraded its outlook on the European Union to negative and warned that the region could lose its 'AAA' debt rating, experts said.

Key benchmark indices in China, Hong Kong, Japan, Singapore and South Korea fell between 0.10 percent and 0.75 percent. European markets were also lower with France's CAC down by 0.63 percent, Germany's DAX trading 0.50 percent lower and the UK's FTSE plunging by over 1 percent.

Back home, 18 stocks finished with gains while 12 stocks ended with with losses in 30-share Sensex.

Besides RIL, SBI and ICICI Bank, other gainers from the Sensex included Gail India (2.6 pc), Jindal Steel (2.44 pc), Tata Motors (1.71 pc), Tata Steel (1.41 pc), HUL (1.18 pc), Maruti Suzuki (1.18 pc), BHEL (1.13 pc) and Bharti Airtel (1.09 pc).

However, HDFC dropped by 1.54 percent, followed by Cipla (1.47 pc), Tata Power (1.28 pc) and Bajaj Auto (0.98 pc).

The total market breadth turned positive as 1,543 stocks ended higher while 1,209 scrips finished lower.

The total turnover declined to Rs 1,634.59 crore from Rs 1,644.47 crore yesterday.

Meanwhile, Foreign Institutional Investors (FIIs) sold shares worth Rs 54.79 crore on September 3, as per provisional data with stock exchanges. On August 31, they had taken out Rs 146.30 crore from equities, as per Sebi data.