Sensex touches 17k ends 72 pts up on firm global cues

Ahead of a meeting of European leaders to resolve the euro-zone debt crisis, the BSE Sensex touched the 17k-level on Wednesday on strong cues from global markets. However, it erased most of the gains in fag-end selling on profit-booking to close at 16,877, up nearly 72 points.

While information technology, capital goods, realty and FMCG sectors attracted good buying, pharma and consumer durables attracted profit-booking. Infosys, HDFC, L&T, SBI, ONGC, HDFC Bank, Wipro and ITC supported the rise. However, the fall in Bharti Airtel, ICICI Bank, NTPC, Sun Pharma and Coal India restricted the gains.

The BSE 30-share index, Sensex, initially touched a low of 16,781.6, but firm Asian equities lifted it to 17,003.7. However, it dropped towards the close and ended at 16,877, up 71.7 points or 0.4 per cent.

The 50-issue Nifty of the National Stock Exchange closed 23.45 points, or 0.5 per cent, up at 5,062.6. Firm Asian markets and higher openings in Europe strengthened investor sentiment, amid reports that EU leaders may successfully evolve a concrete plan to end the euro-zone debt crisis.

“Markets are building expectation that euro zone will come out with a solution to curtail debt crisis and infuse liquidity to fuel in growth. The European central banks are widely expected to cut interest rates at its policy meeting tomorrow,” said Milan Bavishi, head research, Inventure Growth and Securities. However, analysts said domestic indicators were mixed. While the government put on hold its decision to allow foreign direct investment (FDI) in multi-brand retail, it led to Parliament proceedings, which had been disrupted through the winter session thus far.

Foreign institutional investors (FIIs), the main market movers, continued buying and picked up shares worth Rs 211.90 crore on December 5. Globally, key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan gained up to 1.7 per cent. European markets also exhibited a firm trend in the afternoon deals and were up about a per cent. In all, 21 of the 30 Sensex scrips made gains.

Wipro was up 3.3 per cent, Infosys, 1.95 pc, Jaiprakash, 1.9 pc, HDFC, 1.8 pc, ONGC, 1.6 pc, Sterlite, 1.6 pc, SBI, 1.5 pc, Bajaj Auto, 1.4 pc, L&T, 1.3 pc, Tata Steel, 1.2 pc and DLF 1.15 pc. However, Bharti Airtel fell 3.3 per cent, followed by NTPC, 3.2, Sun Pharma, 2.6 pc, Coal India, 2.4 pc, ICICI Bank, 1.6 pc and Cipla, 1.3 pc. Among sectoral indices, BSE-IT rose 1.4 pc, Capital Goods 0.8 pc, Realty - 0.8 pc and FMCG - 0.7 pc, while Healthcare declined by 1.5 pct and Consumer Durables 0.6 pc. The total market breadth on the BSE remained positive as 1,451 stocks ended with gains, while 1,362 stocks finished in the red. The total turnover rose to Rs 3,092.8 crore from the Monday's level of Rs 1,823 crore.