The benchmark BSE Sensex on Thursday ended 40 points higher on value-buying coupled with short-covering by participants amid expiry of September derivatives contracts and mixed global cues.
The 30-scrip index closed at as 5,863.50 as sentiment improved following a mild uptick in rollover of futures and options contracts to October.
Value-buying in consumer durables, technology, FMCG, healthcare, realty and auto kept sentiment positive.
However, an upcoming long weekend and RBI’s policy review on September 29 made investors cautious, who stayed away from creating large bets.
After a dismal start, the BSE Sensex continued to lose ground in line with a sluggish global trend as weak Chinese and US factory data added to lingering growth worries, but then ensured there was no further damage as it closed the day at 25,863.50, up 40.51 points, or 0.16%
The gauge had gained 171.15 points in the previous volatile session on a firming trend in Europe.
On a weekly basis, the BSE Sensex dropped 355.41 points, or 1.35%, while the Nifty fell 113.40 points, or 1.42%, breaking two straight weeks of gains.
Brokers said short-covering by participants on the last trading session of September derivatives series helped.
The broader Nifty ended up by 22.55 points, or 0.29%, at 7,868.50 after trading between 7,804.10 and 7,894.50 intra-day.
The market will be closed on Friday on account of Eid-ul-Zuha.
Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 1,330.12 crore yesterday, as per provisional data from stock exchanges.
Those who gained included Lupin, GAIL, ITC, Bajaj Auto and Maruti Suzuki.
IT stocks such as Infosys, TCS and Wipro were in demand as the rupee weakened against the dollar.
Sectorwise, the BSE IT gained the most by rising 2.02%, followed by consumer durables, technology, FMCG and healthcare.
Broader markets were also in a better shape as investors accelerated their buying activity, lifting the small-cap index by 0.58% and midcap by 0.22%
Globally, among other Asian markets, Shanghai Composite ended 0.86% higher while Hong Kong’s Hang Seng fell 0.97% and Japan’s Nikkei turned lower by 2.76%.
Trend in European markets was mixed in early trade.