Sensex snaps 2-day falling streak on selective buying; up 22 pts
In a volatile trade, the BSE benchmark Sensex today snapped its two-day falling streak by rising 22 points to over 18,882 as investors opted for selective buying in fundamentally strong shares.business Updated: Jan 17, 2011 21:45 IST
In a volatile trade, the BSE benchmark Sensex today snapped its two-day falling streak by rising 22 points to over 18,882 as investors opted for selective buying in fundamentally strong shares.
The Bombay Stock Exchange benchmark index Sensex, which had lost 675 points in last two trading sessions, gained 21.81 points to 18,882.25, led by software exporting stocks on the speculation of improved earnings.
However, every rise in the market was capped on profit booking.
A weak trend in the Asian region and lower opening in Europe also influenced the trading sentiment.
As the market turned volatile, Sensex moved widely between the 19,018.94 and 18,779.38 range, before settling with moderate gains. The gauge dropped 9.9 per cent from its peak level set on November 5 amid concerns that the RBI might raise interest rates an its meeting next week to curb inflation.
The National Stock Exchange index Nifty settled almost flat by easing 0.20 point to 5,654.75, after moving between 5,696.15 and 5,624.15.
Buying in IT stocks on expectations a recovery in global economy helped the market to edge up. Tata Consultancy Services, the biggest software services exporter, gained 1.74 per cent to Rs 1,138.15 before its earnings report later today and Infosys Technologies advanced 2.06 per cent to Rs3,267.95.
Indian IT companies get more than 50 per cent of their revenues from the US and European markets.
The IT sector index gained the most by 1.73 per cent to 6,550.19 followed by Tech index, up 1.33 per cent at 3,865.16. Consumer durable index rose by 0.25 per cent to 5,972.23.
As the selling activity spilled over a wide-front, the smallcap index fell by 1.40 per cent to 8,868.15 and midcap index by 1.39 per cent to 7,123.19.