Sensex gains 29 pts to end above 29K, snaps 2-day losses
The benchmark BSE Sensex was trading above the 29,000-mark by rising over 79 points in early trade on Tuesday as participants made selective buying ahead of monthly expiry in the derivatives segment on Thursday and the Union Budget on Saturday.business Updated: Feb 24, 2015 18:17 IST
In highly volatile trade, the benchmark BSE Sensex on Tuesday rose by 29 points to regain the 29,000 level on select buying, with investors keeping their fingers crossed ahead of three-day budget season. Snapping its two days of losses, the 30-share index closed up by 29.55 points at 29,004.66 points.
The index hovered between a high of 29,130.67 and a low of 28,875.94 in day trade.
The gauge had lost 487.16 points in the previous two sessions after investors locked-in gains after recent gains. The 50-share Nifty of the NSE also recovered by 7.15 points to close at 8,762.10 after shuttling between 8,800.50 and 8,726.75.
"Participants preferred to sit on sidelines in the absence of any major cues and due to excessive intraday volatility. Meanwhile, stock specific move kept the traders busy," said Jayant Manglik, President-retail distribution, Religare Securities Limited.
Covering-up of short positions in selective stocks in view of Thursday's monthly expiry in the derivatives segment positively impacted sentiments, brokers said. FMCG, capital goods, realty, IT, infrastructure and healthcare stocks gained on pre-budget buying by participants on hopes of growth-oriented measures in the upcoming Budget, they said.
However, oil and refinery, metal and banking stocks fell on profit-booking.
"The coming sessions are likely to be highly volatile as we move into the budget day. The expectations from the full budget of the new government are high and the markets have already discounted big-bang reforms into current prices," Rakesh Goyal, Senior Vice President, Bonanza Portfolio, said. Government will present the Railway Budget on Thursday, followed by Economic Survey next day and the Union Budget on Saturday.