Sensex rises 38 points to two-week high
In volatile trade, the benchmark Sensex on Wednesday rose 38.18 points to end at a two-week high of 25,918.95 on the back of key bluechip shares ignoring a rise in retail inflation and slowing industrial production growth.business Updated: Aug 13, 2014 18:19 IST
In volatile trade, the benchmark Sensex on Wednesday rose 38.18 points to end at a two-week high of 25,918.95 on the back of key bluechip shares ignoring a rise in retail inflation and slowing industrial production growth.
Buying in FMCG stocks ITC and HUL, who were the top gainers from the Sensex pack, helped steady the volatile Sensex which slipped into negative territory intra-day. Smart rise in HDFC, Sun Pharma and TCS, also supported the index.
Selling in L&T, SBI, ICICI Bank, Axis Bank, BHEL, Hindalco, Coal India, Tata Steel, Tata Power and Cipla capped the rise, brokers said.
The 30-share S&P BSE Sensex on Wednesday gyrated in a range of 25,972.62 and 25,791.79 before settling at 2-week high of 25,918.95, a rise of 38.18 points or 0.15 %. This is its the best closing since July 30 (26,087.42).
In straight three sessions, Sensex has flared up by 589.81 points or 2.33 %.
The broad-based 50-issue CNX Nifty of the NSE also rose further by 12.50 points, or 0.16 %, to 7,739.55.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Equities closed better with the help of some blue chip companies. Positive sentiments in the market has boosted the confidence of the investors. FII buying in the equities also helped the indices to end positively." Encouraging earnings from some corporates as well as renewed FII buying interest along with positive global cues too supported the market sentiment.
FIIs bought shares worth a net Rs 370.83 crore on Tuesday, as per provisional data from the stock exchanges.
Retail inflation, announced by the government after market hours on Tuesday, measured on consumer price index (CPI) in inched up to 7.96 % in July compared with 7.46 % in June.
The growth rate of the Index of Industrial Production (IIP) also slowed to 3.4 % in June as against 5.0 % (revised) in May, showing signs of sluggishness in the economy.
Realty, capital goods, consumer durable, power and oil&gas shares suffered the most while FMCG, IT and pharma counters attracted good buying support.
Two-tier shares were at the receiving end on profit booking by cautious retail investors after recent rally and as a result the total market breadth was negative, despite rise in the Sensex and the Nifty.
Barring Singapore, which ended just in negative terrain, other Asian markets closed with gains between 0.06 % and 1.02 %.
European stocks were trading mixed with upward bias. The CAC was up by 0.62 % and the DAX by 0.87 % while the FTSE softened by 0.02 %.
From the 30-share Sensex, 14 shares closed with gains while others ended with losses.
Besides ITC, other gainers from the Sensex pack were HDFC (2.26 %), Sun Pharma (2.09 %), Wipro (0.98 %), Sesa Sterlite (0.92 %), TCS (0.86 %) and HDFC Bank (0.64 %).
However, BHEL dropped by 6.57 %, followed by Coal India 3.18 %, Hindalco 3.04 %, Tata Power 2.64 %, SBI 2.50 %, Larsen & Toubro 2.33 %, Axis Bank 2.04 %, Tata Steel 1.33 %, Cipla 1.26 % and ONGC 0.91 %.
Among S&P BSE sectoral indices, FMCG rose by 2.22 per cent followed by IT 0.76 % and and Healthcare 0.75 % while Realty fell by 5.22 %, Capital Goods 2.65 %, Consumer Durables 2.18 %, Power 2.17 % and Metal 1.27 %.
The overall market breadth turned negative as 2,049 stocks closed in the red, 871 ended in the green while 90 ruled steady.