Sensex snaps 3-day falling streak, gains 110 pts
Snapping 3-day falling streak, the Bombay Stock Exchange benchmark sensex today gained 110 points on fresh buying in blue chips at attractive levels amid government comments that inflation would ease on the back of good monsoon, even as global markets remained weak.business Updated: Aug 17, 2011 17:03 IST
Snapping 3-day falling streak, the Bombay Stock Exchange benchmark Sensex on Wednesday gained 110 points on fresh buying in blue chips at attractive levels amid government comments that inflation would ease on the back of good monsoon, even as global markets remained weak.
The Sensex, which had lost nearly 400 points in the last three trading sessions, bounced back on strong buying to close 109.86 points up at 16,840.80, after touching 17,000.38.
The broad-based National Stock Exchange index Nifty also rose 20.80 points to 5,056.60 led by IT, FMCG, capital goods and metal sectors. It touched the day's high of 5,112.15.
Brokers said Finance Minister Pranab Mukherjee's comments that inflationary pressure would ease further on the back of good monsoon helped lift the sentiment somewhat.
Inflation eased marginally to 9.22% in July, from 9.44% in June. High inflation has put pressure on interest rates hitting corporate margins. The Reserve Bank has raised key interest rate 11 times since March last year to tame inflation.
However, a weak trend in global markets capped the gains in the domestic market.
Infosys, TCS, Wipro, Hero Motors, Coal India, BHEL, L&T, HDFC Bank and ONGC helped the rally.
The IT sector index gained the most, rising 2.23 per cent to 5,162.52, followed by Tech index - up 1.57% at 3,242.32. FMCG index rose 1.38% to 3,971.64 and capital goods by 0.59% to 12,132.35.
The realty sector index remained the major loser for the second straight day as DLF - country's largest developer -slumped 6.03% to Rs 177.60 as CCI has imposed Rs 630 crore penalty on it for 'abuse of dominant position'. It has lost 14% in the past four days.