In a highly volatile trading on Thursday, the BSE benchmark Sensex moved up for the third day in a row, gaining 100 points amid slight easing of the food inflation and a strong trend in global stock markets.
The Bombay Stock Exchange 30-share index, Sensex, which had gained 352 points in the previous two sessions, advanced further by 100.54 points or 0.59 per cent to 17,165.54.
In a choppy trade, the gauge touched the day’s high of 17,209.66 and a low of 16,987.37 but easing food inflation and a strong trend in global stocks pushed it upwards.
In a similar fashion, the broad-based National Stock Exchange index Nifty moved between 5,169.25 and 5,098.25 before closing higher by 28.60 points at 5,153.25.
Food inflation returned to single digit at 9.55 per cent for the week ended August 27, from 10.05 per cent in the previous week. Investors have been worried about further hike in interest rates in view of high inflation. Any slide in overall inflation or food inflation, tends to raise hopes of a moderation in interest hikes by the Reserve Bank.
The upsurge was led by the two most heaviest stocks, with 20 per cent weightage on the Sensex — Reliance Industries and Infosys. RIL continued to rise for the third day by gaining another 2.62 per cent, and Infosys by 2.07 per cent.
Other front runners were Larsen and Toubro, ICICI Bank, Tata Motors, TCS, Wipro, Hindustan Unilever, Cipla, Maruti Suzuki and Mahindra and Mahindra.
The consumer durables index gained the most by rising 1.99 per cent to 6,696.16, followed by IT index — up 1.52 per cent at 5,065.96. Oil and Gas index rose by 1.42 per cent to 8,821.44 and Teck index by one per cent to 3,213.19.
In all, 15 Sensex stocks gained, while others closed with losses.