Fag-end selling trims early gains

Losing Steam

• BSE Sensex marginally higher by 30.99 pts or 0.04% at 71,386.21
• During the day, Sensex jumped 680.25 pts or 0.95% to 72,035.47
• Nifty ended 31.85 pts or 0.15% at 21,544.85
• During the day, Nifty climbed 211.45 pts or 0.98% to 21,724.45
• L&T, Airtel, HCL Tech, Tata Motors, Sun Pharma and Tata Steel were gainers
• Nestle, Asian Paints, Bajaj Finserv, HDFC Bank and Axis Bank among laggards

Mumbai: Equity benchmark indices Sensex and Nifty on Tuesday closed moderately higher after a fag-end sell-off minimised the handsome gains posted in early trading. Besides, investors opted for profit-taking ahead of the start of corporate earnings season and macroeconomic data announcements later this week, traders said.

After rising sharply during the day, the 30-share BSE Sensex trimmed most of the gains during the fag-end trading and ended marginally higher by 30.99 points or 0.04 per cent at 71,386.21. During the day, it jumped 680.25 points or 0.95 per cent to 72,035.47. The Nifty also gave up most of the intra-day gains and closed 31.85 points or 0.15 per cent up at 21,544.85. During the day, it climbed 211.45 points or 0.98 per cent to 21,724.45.

“Markets witnessed a roller coaster ride on Tuesday and ended almost flat, in continuation to the prevailing consolidation phase. Firm global cues triggered a gap-up start in Nifty, which further strengthened with renewed buying in select heavyweights, however a sharp cut in the latter half trimmed the gains,” said Ajit Mishra, SV-P (technical research), Religare Broking Ltd.

“Positive sentiments in the Indian IT sector, fuelled by a US tech rally and demand on emerging technologies, overshadowed the anticipated muted Q3 results of the sector. Market optimism about potential softening of US inflation is driving expectations of near-term rate cuts, bolstering overall sentiment. But in-between profit-booking is emerging due to mixed cues from Asian markets as well as high valuation concerns,” said Vinod Nair, head (research), Geojit Financial Services.

In the broader market, the BSE smallcap gauge climbed 0.37 per cent, and the midcap index rose 0.07 per cent. Among the sectoral indices, realty jumped 2.52 per cent, power rallied 1.10 per cent, auto (1.02 per cent), healthcare (0.90 per cent), capital goods (0.89 per cent) and consumer discretionary (0.68 per cent). In contrast, FMCG, telecommunication, bankex and consumer durables were the losers.

Larsen & Toubro was the biggest gainer on the Sensex chart, rising 1.55 per cent, followed by Bharti Airtel, HCL Tech, Tata Motors, Sun Pharma and Tata Steel. On the other hand, Nestle, Asian Paints, Bajaj Finserv, HDFC Bank and Axis Bank were among the laggards.