Sensex ends at new high on rebound in metal, auto stocks
The S&P BSE 30-share barometer resumed lower in line with weak Asian cues and moved in a range of 26,481.97 and 26,314.89.
Mumbai: The benchmark Sensex today erased initial losses and closed about six points up at a new closing peak of 26,442.81, extending gains for the fourth straight session, on recovery in select metal and auto scrips combined with buying in defensive sectors like FMCG and healthcare.
The S&P BSE 30-share barometer resumed lower in line with weak Asian cues and moved in a range of 26,481.97 and 26,314.89. It ended at new closing high of 26,442.81, logging a small rise of 5.79 points, or 0.02 per cent. In four straight sessions, the Sensex has gained over 128 points.
However, the broader 50-issue CNX Nifty of the NSE eased for the second straight day and closed at 7,904.75, a fall of 1.55 points, or 0.02 percent. It moved between 7,862.45 and 7,915.45 intra day on alternate bouts of selling and buying.
Brokers said investors have slowly come to terms with the potential impact of the Supreme Court's ruling on coal block allocations. As a result, Hindalco, Tata Steel, JSW Steel, Hindustan Zinc and SAIL rebounded from their early lows.
However, some counters like Jindal Steel and Bhushan Steel continued to suffer.
Heavy selling was initially seen after Competition Commission of India imposed Rs 2,545 crore fine on 14 car makers, including Tata Motors, Maruti Suzuki and Mahindra & Mahindra, for violating trade norms in the spare parts and after services market.
However, short-coverings ahead of the expiry of August contract on Thursday aided the smart recovery in auto as well as metal stocks also, trader said.
Some shares from power, capital goods and refinery sectors attracted profit-booking while pharma and FMCG were in demand as investors tried to seek safe refuge, they added.
"The Sensex closed marginally higher and CNX Nifty closed marginally lower after witnessing intraday volatility...Going ahead, volatility is expected to continue as F&O expiry andGDP numbers are due on Thursday and Friday," said Jayant Manglik, President-retail distribution, Religare Securities.
Meanwhile, Foreign Portfolio Investors (FPIs) picked up shares worth a net Rs 127.33 crore yesterday as per provisional data from the stock exchanges.
In Asia, barring South Korea and Taiwan which closed slightly better, other country indices ended in the red between 0.22 percent and 0.99 percent.
European markets were trading mixed with downward bias in their late morning deals. The CAC was down 0.07 percent and the DAX by 0.37 percent. The FTSE, however, was up 0.27 percent.
Back home, 15 scrips out of the 30-share Sensex pack ended higher. Major Sensex gainers were Hindalco (3.64 percent), Tata Steel (2.57 percent), Gail (1.49 percent), HUL (1.40 percent), Sun Phamra (1.35 percent), Cipla (1.09 percent), Tata Motors (0.90 percent) and ITC (0.73 percent).
However, Tata Power fell by 2.77 percent, ONGC 2.48 percent, Larsen & Toubro 1.33 percent, Maruti 0.96 percent, Wipro 0.78 percent, SBI 0.64 percent and NTPC 0.63 percent.
Among the S&P BSE indices, Healthcare (HC) rose by 1.12 percent, FMCG 0.90 percent and Metal 0.75 percent while Power fell by 1.32 percent, Capital Goods (CG) 0.84 percent and Oil&Gas 0.70 percent.
The total market breadth remained negative as 1,828 stocks finished lower, 1,130 stocks ended higher while 116 ruled steady. Total equity turnover dropped to Rs 2,804.76 crore from Rs 2,887.96 crore yesterday.
Both BSE Sensex and NSE Nifty encountered minor losses. With the exception of fast moving consumer goods (FMCG), pharma and healthcare index, all sectors ended in red
Domestic markets ended in negative for the sixth consecutive session. Investors remain cautious over rising inflation levels as retail inflation rose to 7.79 percent by April end
Domestic markets rebounded after a six-day losing streak. Auto, realty and PSU Bank were some of the biggest gainers. IT and pharma were some of the sectors which experienced minor losses