Lower European opening sparks selling pressure
MUMBAI: The Bombay Stock Exchange benchmark Sensex pared early gains and ended flat on Thursday on profit-booking after a 6.4 per cent jump over the last two sessions, amid a weak opening in Europe.
The Sensex, which gained 850 points in the previous two sessions and added 239 points in Thursday’s trading, ended a shade lower by 2.99 points at 14250.25. The key index shuttled between 14493.10 and 14169.58 during the day.
Marketmen said selling pressure sparked following reports of European stocks commencing the day lower, encouraging speculators to book profits at higher levels.
SMC Global Vice-President Rajesh Jain said, “After around 10 per cent rally in the market for the past two days, there has been sideways consolidation today [Thursday]. As of now, the correction seems to be over for the Indian market as the global cues are positive and FIIs are pouring in money”.
Brokers said the falling trend was checked following encouraging quarterly results by leading companies.
Auto and refinery shares were in demand after Reliance Industries led the gains by adding Rs. 59.30 or 3.16 per cent to Rs. 1,934.30. Infosys Technologies rose by Rs. 4.15 or 3.20 per cent to Rs. 1,144.05. The two carry nearly 27 per cent weight in the Sensex. The market did a flip-flop and fell sharply at the fag end even as the inflation rate rose marginally to minus 1.21 per cent and European markets slipped in early trade after a three-day surge.
Marginal drop in rupee
The rupee ended marginally lower by four paise at 48.66/68 against the dollar on Thursday even after a strong start, on renewed demand for the U.S. currency from banks and firms on the back of a rise in overseas markets. The rupee closed at 48.6400 on Wednesday. The domestic currency resumed at 48.50/51 and later rose to 48.45. It moved in a range of 48.45 and 48.86 intraday.
The dollar gained against other major currencies in London ahead of some key U.S. corporate earnings.— PTI