Sensex extends gains for third day; up by 34 points

07/02/2008 MUMBAI: A gloomy look on the Bombay Stock Exchange as the Fears of recession in US, fuelled further by reports of contraction in services sector and Fed Reserve's comments yesterday, sent the domestic stock markets on a tailspin with the benchmark Sensex tumbling by over 626 points today, the biggest loss in the last two weeks. Photo: Paul Noronha NICAID:110096543

The benchmark Sensex on Thursday closed with modest gains of 34 points after surrendering most of its early lead due to a fall in index heavyweight Reliance Industries.

The BSE barometer closed at 16,711.11 points, a rise of 34.07 points or 0.20 per cent over its previous closing. It had rose by 143 points to a high of 16.820.02 in early trade.

The broad-based Nifty of the National Stock Exchange crossed 5,000-mark to touch a high of 5,003.05, the level not since May 23, 2008. The Nifty closed at 4,965.55 points, a net gain of 7.15 points or 0.14 per cent.

Brokers attributed an initial rise in share values to strong Asian cues on the back of firm Wall Street advices after US economic data raised hopes that the global economic recovery is strengthening.

Besides Straits Times which ended barely flat, other Asian indices ended in the green with a gain between 0.5 to 2.0 per cent. European markets also were trading higher in their afternoon trade.

However, fall in the top heavyweight, RIL, mainly weighed on the bourses as the share was down by Rs 97.15 or 4.45 per cent and was the top loser from the Sensex pack. RIL informed BSE that Petroleum Trust sold over one crore equity shares of the company today.

IT and auto counters attracted good buying while refinery and realty stocks were at the receiving end.