Sensex closes at 49 pts by erasing initial losses

Mumbai, Feb 5: The benchmark Sensex erased early losses and ended about 49 points higher on Wednesday led by gains in Tata Consultancy Services (TCS), Tata Motors and HDFC Bank, amid positive global cues.

Shares from auto, realty and Information and Technology segments attracted good buying interest while from Fast-Moving Consumer Goods (FMCG) and refinery closed with losses on profit-booking, said traders.

The Bombay Stock Exchange (BSE) 30-share barometer resumed better but immediately dipped to a low of 20,076.10 on mixed Asian cues and sustained selling by foreign funds.

Buying after mid-session, however, lifted the Sensex to settle at 20,261.03, a rise of 49.10 points or 0.24 per cent.

The gauge had edged up nearly three points on Tuesday.

Between January 24 and February 3, the BSE index plunged over 1,100 points as the Sensex witnessed falls in six days out of seven.

Smart rise in TCS, Tata Motors, HDFC Bank, Tata Steel, Mahindra and Mahindra (M&M), Infosys, Coal India, Bajaj Auto, GAIL India, National Thermal Power Corporation (NTPC) and Hindalco mainly supported the Sensex rise on Wednesday. Fall in ITC and Reliance Industries Limited (RIL) capped gains.

Overall, 17 Sensex scrips gained, 12 fell and Cipla ended unchanged.

The broad-based 50-issue CNX Nifty of the National Stock Exchange (NSE) ended up 21.50 points, or 0.36 per cent, at 6,022.40.

“Markets opened on a flat note and showed weakness in first part of trading day. The latter part saw good recovery from lows,” said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.

Short covering was seen in banking and capital goods stocks which have been beaten down, according to Shrikant Chouhan, Head- Technical Research, Kotak Securities.

Asian stocks closed mixed on Wednesday. Key indices from Japan and South Korea finished in the green while those from Hong Kong, Singapore and Taiwan ended in the red. China market will remain closed till February 7, 2014 for the Lunar New Year holiday.

European indices were trading in the green when Indian stock markets closed for Wednesday.

Foreign Institutional Investors (FIIs) sold shares worth a net Rs 1,234.02 crore yesterday as per provisional data from the stock exchanges.

(PTI)