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Sensex gains 43 pts on easing inflation

Sensex gains 43 pts on easing inflation

In a volatile trade, the BSE benchmark Sensex on Thursday ended 43 points up at 18,489.76 as funds bought fundamentally strong stocks amid easing crude oil prices as well as food inflation, and firm global trends.

In a volatile trade, the BSE benchmark Sensex on Thursday ended 43 points up at 18,489.76 as funds boughtfundamentally strong stocks amid easing crude oil prices aswell as food inflation, and firm global trends.

The Bombay Stock Exchange index Sensex tumbled to a lowof 18,253.62 at early stage before ending higher by 43.26points to 18,489.76 on alternate bouts of trading.

The gauge touched a high of 18,603.57 midway.

The trading sentiment was mixed, with investors bookingprofits after Sensex's steepest gain in 21-month in theprevious session. At the same time, they picked up capitalgoods and auto sector stock available at lower levels,absorbing the selling pressure.

Similarly, the broad-based National Stock Exchange indexNifty gained 13.90 points at 5,536.20, after moving between5,570.75 and 5,468.25 points.

Food inflation fell to 10.39 per cent for week endedFebruary 19, from 11.49 per cent in the previous week, raisinghopes that interest rates may not rise steeply in near future.

Crude oil fell 1.4 per cent to 100.78 dollar a barrel inUS after rising to 103.94 dollar.

Investors said that falling crude oil prices reducedfears of further rise in overall inflation, amid hopes ofinternational efforts to reduce tensions in Libya.

A firm trend in the Asian region and higher opening inEurope added to the support.

Strengthening stocks of HDFC Bank, HDFC Ltd, Larsen andToubro, BHEL, Maruti Suzuki, Tata Motors, Bajaj Auto, TataConsultancy Services checked the market from any major fall.

The capital goods sector index was major gainer, adding2.35 per cent to 13,222.99 as Larsen and Toubro, the largestengineering company rose to a one- week high. BHEL stocksrecorded handsome gains on interested buying.

The auto sector index was second-runner by rising 1.86per cent to 8,880.28, followed by consumer durables index thatwas up 0.45 per cent to 5,753.50.

With selective buying, spread over a wide front, midcapindex rose by 0.33 per cent to 6,598.95 and smallcap index by0.21 per cent to 8,019.88.

On the other hand, stocks in IT, metal, refinery, teckand healthcare sectors remained weak on profit booking.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Mar 03, 2011, 12:21 PM IST
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