Sensex inches up 27 points;consumer durables, telecom stocks rise
Mumbai: In volatile trade, the Sensex on Tuesday erased some early gains and ended only 27 points higher after investors booked profits in IT and FMCG sectors while consumer durables, telecom and realty shares attracted buying interest amid a firming global trend.
After climbing to over 10-week high of 17,526.82, the BSE benchmark index pared a substantial portion of its 128-point rise and ended 26.73 points higher at 17,425.73 at closing.
Among the 30-share Sensex, 16 stocks including Bharti Airtel, Hindalco, HDFC and Coal India ended higher while 14 scrips including BHEL, Jindal Steel, TCS and ITC dropped.
Brokers said trading sentiment in the morning session improved on fresh capital inflow after the rupee rose to a 1-month high of 54.86. However, monsoon worries surfaced again with Agriculture Minister Sharad Pawar saying monsoon rains have been 31 percent below average up to July 2.
FMCG sector which gets a boost in sales with a good monsoon helping rural India saw selling emerge. ITC and HUL shares shed over 1 percent each.
"Markets turned volatile in the late afternoon and slipped into red. But, they recovered a little in the last half an hour of session and managed to close in green," said Shanu Goel, Senior Research Analyst, Bonanza Portfolio.
IT stocks including TCS and Infosys also ended lower today after FII brokerage Macquarie downgraded the domestic information technology sector.
The gains in Sensex were supported by telecom stocks amid reports that existing players may not have to pay the auctioned arrived price for their additional spectrum. In the realty pack, DLF with 4.3 percent rise led gains.
Similarly, the 50-share National Stock Exchange index Nifty closed 9.35 points up at 5,287.95.