Sensex gains 29 pts to end above 29K, snaps 2-day losses

In highly volatile trade, the benchmark BSE Sensex today rose by 29 points to regain the 29,000 level on select buying, with investors keeping their fingers crossed ahead of three-day budget season.

Snapping its two days of losses, the 30-share index closed up by 29.55 points at 29,004.66 points. The index hovered between a high of 29,130.67 and a low of 28,875.94 in day trade.
The gauge had lost 487.16 points in the previous two sessions after investors locked-in gains after recent gains.

The 50-share Nifty of the NSE also recovered by 7.15 points to close at 8,762.10 after shuttling between 8,800.50 and 8,726.75.

"Participants' preferred to sit on sidelines in the absence of any major cues and due to excessive intraday volatility. Meanwhile, stock specific move kept the traders busy," said Jayant Manglik, President-retail distribution, Religare Securities Limited.

Covering-up of short positions in selective stocks in view of Thursday's monthly expiry in the derivatives segment positively impacted sentiments, brokers said.

FMCG, capital goods, realty, IT, infrastructure and healthcare stocks gained on pre-budget buying by participants on hopes of growth-oriented measures in the upcoming Budget, they said.

However, oil and refinery, metal and banking stocks fell on profit-booking.
"The coming sessions are likely to be highly volatile as we move into the budget day. The expectations from the full budget of the new government are high and the markets have already discounted big-bang reforms into current prices," Rakesh Goyal, Senior Vice President, Bonanza Portfolio, said.

Government will present the Railway Budget on Thursday, followed by Economic Survey next day and the Union Budget on Saturday.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 601.91 crore while domestic institutional investors sold shares worth a net Rs 163.79 crore yesterday.

Hindustan Unilever was the top gainer among the Sensex scrips surging by 3.15 per cent.
ITC gained 1.37 per cent after the company won the bid to acquire Park Hyatt Hotel property in Goa.

Among others, L&T rose by 2.03 pc, BHEL by 1.78 pc, Cipla by 1.23 pc, GAIL by 1.19 pc, Maruti Suzuki by 1.09 pc, Wipro by 0.52 pc, Axis Bank by 0.38 pc and Infosys by 0.33 pc.
Laggards were Sesa Sterlite, ONGC, Tata Steel, Tata Motors, RIL, Bharti Airtel, Tata Power, ICICI Bank, Hindalco, M&M, Dr Reddy and SBI that slumped up to 3.49 per cent.

In the 30-Sensex constituents, 17 ended higher, while 13 remained in the negative terrain.
Sectorwise, the BSE FMCG index gained the most by surging 1.45 per cent, followed by Capital Goods 1.09 per cent and Realty index by 0.56 per cent.

Oil & Gas index fell by 1.15 per cent and Metal by 1.10 per cent.
The total market breadth remained lower as 1,712 stocks ended in red, 1,142 finished in green while 129 ruled steady. The total turnover rose to Rs 3,623.82 crore from Rs 3,570.52 crore yesterday.

Key benchmark indices in Singapore, Taiwan, Japan and South Korea rose by 0.51 pct to 1.05 pct while Hong Kong's Hang Seng index fell by 0.35 pct. China's mainland markets remained closed today for the Lunar New Year holiday.

European shares were trading lower after Greece submitted a list of proposals on the overhaul the nation's economy to European institutions and the IMF in line with the country's bailout programme. Key benchmark indices in UK, France and Germany moved down by 0.02 pct to 0.24 per cent.