Stocks overcome hiccups, IT the bright spot

Stocks overcome hiccups, IT the bright spot

Stocks overcome hiccups, IT the bright spot

Stocks today sailed past many hiccups as IT and technology shares ensured the benchmarks ended in stable waters for the sixth day running.

Early on, the 30-share Sensex had slipped to 33,468.30, but some last-minute buying saved the day as the index settled up 26.53 points, or 0.08 percent, at 33,588.08.

The gauge had rallied over 801 points in the past five straight sessions. After oscillating between 10,374.30 and 10,307.30, the 50-share NSE Nifty ended the day flat at 10,348.75, but still up 6.45 points, or 0.06 percent, from its previous close.

Persistent buying by domestic institutional investors (DIIs) came against the background of a recovery in the rupee.

"Proposals to change the direct tax code... raised fears of more disruption, but ongoing reforms and Fed minutes showing slower than expected rate hikes lent support at lower levels," said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.

Global market indicators were mixed.

Domestic institutional investors (DIIs) mopped up equities worth a net Rs 837.22 crore while foreign portfolio investors (FPIs) sold off shares worth a net Rs 441.46 crore yesterday, provisional data showed.

IT bellwether Infosys was on the top of the heap, jumping 2.60 percent. Sun Pharma, Reliance Industries, PowerGrid, Axis Bank and Hero MotoCorp added up to 1.78 percent. However, Dr Reddy's, Adani Ports, Bajaj Auto, Asian Paints and NTPC all succumbed to profit-booking and ended lower by up to 2.10 percent, holding up the gains.

Broader markets turned out to be benchmark beaters, with small-cap and mid-cap indices surging by up to 0.51 percent. The BSE IT index was the investors' favourite, with a jump of 1.30 percent, followed by technology, capital goods and consumer durables. Japanese financial markets were shut today for a public holiday.