Volatility continued to rock the stock markets on the first day of June series as the benchmark Sensex surrendered major part of initial gains and closed with a modest 26 points gain with help from some IT and banking counters.
The S&P CNX Nifty of the National Stock Exchange (NSE) advanced just 1.25 points to a new closing high of 4,297.05, though it touched 2,325.80 points in intra-day trade.
The 26-point gain registered by the 30-share Sensitive Index (Sensex) was also the key index's third highest closing. It opened strong at 14,610.28 and gyrated in a range of 14,682.10 and 14,539.89 before concluding the day at 14,570.75 from last close of 14,544.46, a gain of 26.29 points or 0.18 per cent.
Dealers attributed selling to week-end profit-booking and mixed Asian markets.
IT shares, which were at the receiving end due to rising rupee, recovered on fresh buying support despite rupee inching toward a fresh new 9-year high.
Initially, the sentiment got a boost after overnight news that the Indian economy grew by a whopping 9.4 per cent in 2006-07, the fastest rate in 18 years, after signs of slowing at the end of the fiscal.
Sustained buying by Foreign Institutional Investors (FIIs) also aided the firm trend. FIIs picked up shares worth Rs. 168.86 crore (provisional) on Thursday while Domestic Institutional Investors (DIIs) also pumped in Rs. 32.19 crore on the same day.