Sensex ends marginally up, profit-selling erases early gains
The Bombay Stock Exchange benchmark Sensex today ended moderately higher by over 32 points, driven by a firming global trend and reports of increased taxes paid by corporates.
The Sensex, which had gained nearly 150 points in early trade, fell back on emergence of profit-booking and closed 32.44 points higher at 18,238.31.
The broad-based National Stock Exchange index Nifty rose by 14.30 points to 5,486.15, after touching an intra-day high of 5,513.95 points.
The market was in a bullish mood following reports of a firming Asian trend and a better opening in Europe, influenced by better-than expected US factory data, indicating that the global economy is in good shape. Finance Minister Pranab Mukherjee's statement that tax collections from companies have increased further fuelled the uptrend.
Stocks of car and cement companies, led by ACC and Tata Motors, attracted strong buying, following reports of a significant increase in sales in August.
In the 30-BSE index components, 18 stocks ended with gains, while 12 finished lower. Consumer durables, FMCG, auto and metal sector stocks led the gains.
Banking shares were in demand as the sectoral index rose by 0.79 per cent to 12,448.52 on optimism that the strong GDP growth of the Indian economy would boost demand for loans.
Jaiprakash Associates, a construction company that also makes cement, gained the most in more than two months after reporting that sales in August had improved. The stock rose by Rs 4.75 to Rs 114.70.
The metal sector index gained 0.55 per cent to 15,515 as Sterlite Industries shot up by Rs 4.05 to Rs 160.60 following a steep rise in base metal prices in international markets.
Copper in London was trading near a four-month high after better-than-expected economic data from the US and China, the two biggest consumers, boosted the outlook for metal demand.
Some investors were seen shifting their funds to small and mid cap stocks available at cheaper rates with strong fundamentals. The small cap index rose by 1.11 per cent to 9,820.62 and the mid cap index by 0.78 per cent to 7,783.90.
Shares of Jindal Poly Films, a mid cap company stock, remained in keen demand for the fourth straight day and recorded a gain of Rs 41.40 to Rs 981.20 on reports of a bonus issue.
