Sensex snaps three-day losing streak, closes 55 points higher
Led by Larsen & Toubro, Reliance Industries and Infosys, the BSE benchmark Sensex snapped a three-day losing streak to close over 55 points higher today amid a decline in food inflation.business Updated: May 24, 2011 21:28 IST
Led by Larsen & Toubro, Reliance Industries and Infosys, the BSE benchmark Sensex snapped a three-day losing streak to close over 55 points higher today amid a decline in food inflation.
The 30-share Bombay Stock Exchange barometer, which lost 445 points in the previous three trading sessions, rose by 55.20 points to 18,141.40.
Similarly, the broad-based National Stock Exchange Nifty index rose by 7.50 points to 5,428.10 after falling to an intra-day low of 5,411.25.
A decline in food inflation to 7.47 % for the week ended May 7 and a firming global trend further fuelled the uptrend. Asian stocks closed higher and European stock markets opened on a strong note on the back of overnight gains in the US market. The recovery move was backed by a rise in the fourth quarter earnings of engineering major Larsen and Toubro, as well as a rebound in stocks of the most-weighted firm in the Sensex pack, Reliance Industries, as some investors judged its recent losses as excessive.
Reliance Industries surged by 1.45 % to Rs 914.90 today, recovering from a three-month low yesterday. The second-most weighted firm in the Sensex pack, Infosys Technologies, rose by 0.20 % to Rs 2,846.35. The two companies account for nearly 23 % of the benchmark index's total weight. Larsen and Toubro, the largest engineering company and an index kitty stock, rose by 5.92 % to Rs 1,594.90 after reporting a record profit and securing a contract worth Rs 1,450 crore from Gujarat State Petroleum Corporation. The capital goods sector index gained the most, rising by 2.82 % to 12,897.31, followed by the oil and gas index, which rose by 1.16 % to 9,292.25.
The information technologies sector index rose by 0.34 % to 6,037.40, in line with a better trend in the US stock markets. Over 50 % of the country's software export business comes from the US and European markets. However, selling pressure in realty, metal, power, healthcare and banking stocks capped the gains.