Sensex up 56 pts; Airtel, Wipro, auto pack share limelight
Selective buying in auto stocks, Bharti Airtel and Wipro helped the BSE benchmark Sensex today recover from early losses and end the day 56 points higher.business Updated: Nov 01, 2012 17:54 IST
Selective buying in auto stocks, Bharti Airtel and Wipro helped the BSE benchmark Sensex on Wednesday recover from early losses and end the day 56 points higher.
The Sensex, which had gained 74.53 points in Wednesday's trade, opened weak and was trading over 60 points lower weighed down by RIL, HUL, ITC and Infosys in initial trades.
The sentiment reversed on robust auto sales numbers. Bajaj Auto, M&M and Maruti rose in the 1.3-1.7% range after good numbers and Tata Motors, which posted numbers after markets closed, shot up by 4.89%.
Shares of telecom major Bharti Airtel rose 4.41% on hopes of some easing as Empowered Group of Ministers (EGoM) on Thursday consider the recommendations of Telecom Commission on spectrum refarming, said market dealers.
The 30-share Sensex finally closed with again of 56.32 points or 0.30%, at 18,561.70. On the similar lines, the wide-based NSE index Nifty ended 25.35 points higher at 5,645.05 after touching a low of 5,601.95 in early trade.
Shares of Wipro, which rose 7% in early trade after the company announced separation on non-IT business, finally ended 3.02% higher.
"The rise was strongly supported by the stocks in the auto sector...RIL did show some initial weakness but the stock closed in positive territory at close," said Milan Bavishi, Head Research, Inventure Growth & Securities.
Had there not been a fall in ITC, HUL, HDFC Bank and ONGC, the rise in Sensex would have greater, said analysts.
A slight rise in country's manufacturing sector to 52.9 in October from 52.8 in September as per HSBC India Manufacturing Purchasing Managers' Index, also aided the market mood.
Besides, a firming trend in the Asian region and a higher opening in the European market, helped sustain the late recovery on domestic boures, brokers said.
The BSE consumer durables sector index gained the most today by rising over 5.5% as Titan Industries rallied by a whopping 9.83% on the back of strong performance in the second quarter.
Asian stocks ended mixed on reports of Australian manufacturing and US business activity contracting and Panasonic Corp projected a full-year loss.
Key benchmark indices in China, Hong Kong, Japan and Taiwan closed with gains, while those from Singapore and South Korea finished with losses.
Europe, however, were quoting slightly better as investors awaited US manufacturing growth reports. The CAC and the DAX both were marginally up, and the FTSE was up 0.10%.
Back home, about 20 of the 30 Sensex-based counters ended higher 8 scrips finished lower. Sterlite and NTPC closed unchanged. Besides Tata Motors and Bharti, other major gainers were Cipla (3.12%), Wipro (3.02%), Bajaj Auto (1.71%), M&M (1.66%), Tata Steel (1.41%), Hero MotoCorp (1.40%), Maruti Suzuki (1.32%), Jindal Steel (1.19%) and Sun Pharma (1.18%).
Kishor P Ostwal, CMD, CNI Research said: "Market closed 56 points plus and consolidation move is on amidst the earnings season. The Kejriwal effect was short-lived on RIL."
Among losers, HUL dipped by 1.84%, followed by ONGC (1.34%), ITC (1.26%), GAIL India (0.90%) and HDFC Bank (0.89%).
Across indices, the BSE-CD flared up on rise in Titan Industries, TTK Prestige and Whirpool. BSE-Auto also shot up by 2.20% on smart rise in auto sales in the month of October. BSE-Realty and BSE-Power also notched up gains.
BSE-FMCG, however, declined by 0.86%.
Total market breadth remained positive as 1,673 stocks settled up while 1,162 counters ended down. The total market turnover was relatively up at Rs. 1,987.22 crore from Rs. 1,904.28 crore on Wednesday.
Meanwhile, Foreign Institutional Investors (FIIs) bought shares worth a net Rs. 248.48 crore on Wednesday as per provisional data from the stock exchanges.