The BSE Sensex touched the 17K level on Wednesday on strong cues from global markets ahead of a meeting of European leaders to resolve the euro-zone debt crisis, but erased most of the gains in fag-end selling on profit-booking to close at 16,877, up nearly 72 points.
IT, capital goods, realty and FMCG sectors attracted good buying, while from pharma and consumer durables attracted profit-booking.
Infosys, HDFC, L&T, SBI, ONGC, HDFC Bank, Wipro and ITC supported the rise. However, the fall in Bharti Airtel, ICICI Bank, NTPC, Sun Pharma and Coal India restricted the gains.
The BSE 30-share index, Sensex, initially touched a low of 16,781.62 but firm equities in the Asian region lifted it to over 17K mark at 17,003.71. However, it dropped towards the close and ended at 16,877.06, up 71.73 points or 0.43 percent.
The 50-issue Nifty of the National Stock Exchange closed 23.45 points or 0.47 per cent up at 5,062.60.
Firm Asian markets and higher openings in Europe strengthened investor sentiment amid reports that EU leaders may successfully evolve a concrete plan to end the debt crisis ahead of the
crucial European Union summit.
"Markets are building expectation that euro-zone will come out with a solution to curtail debt crisis and infuse liquidity to fuel in growth. The European central banks are widely expected to cut interest rates at its policy meeting tomorrow," said Milan Bavishi, Head Research, Inventure Growth and Securities.
Analysts said, however, that domestic indicators were mixed. While the government
put FDI in multi-brand retail on hold, it led to parliament proceedings which had been disrupted throughout the winter session thus far.