Sensex closes 120 points high; FMCG stocks rise (Roundup)

Following international positive cues, a benchmark index of Indian equities markets closed Thursday's trade at 28,562.82, up 120.11 points or 0.42 percent from its previous close.

Sentiments were optimistic a day after the markets closed flat. Expectations were guided by base assumption that the world economy will turn stronger and stable as European Central Bank (ECB), China and Japan provide additional support by way of liquidity and policy.

The markets were cheered ahead of the ECB meet Thursday.

Healthy buying was seen in fast moving consumer goods (FMCG), bank and capital goods stocks, while heavy selling pressure was observed in information technology (IT), consumer durables and technology, entertainment and media (TECK) scrips.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 28,616.93 points, closed at 28,562.62 points, up 120.11 points or 0.42 percent from the previous day's close at 28,442.71 points.

The Sensex touched a high of 28,808.78 points and a low of 28,448.95 points in intra-trade.

The S&P FMCG index gained by 235.46 points, bank index went up by 161.66 points, and capital goods index rose by 65.31 points.

However, IT index was lower by 53.22 points, consumer durables index was down 52.75 points, and TECK index dipped by 37.75 points.

"In the near term, apart from crude, focus will consistently remain on further reform initiatives in the winter session of the parliament," said Dipen Shah, head, private client group research, Kotak Securities.

"Disinvestment plans of the government in the next couple of months will be closely watched. We believe that affirmative action on reforms by the government will be needed for maintaining confidence in the markets."

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed in positive territory. After hitting an intra-day record high of 8,626.95 points, it closed at 8,564.40 points -- up 26.75 points or 0.31 percent.

"After making an all-time high at 8,626, the market pared most of its gains on the back of profit booking in the first half of the day. Later, selective buying especially FMCG stocks, helped the market to recover from the day's low at 8,526," said Alex Mathews, head research, Geojit BNP Paribas Financial Services.

"If there is any positive announcement from the ECB front, then market may revisit today's high."

The major Sensex gainers were: ITC, up 5.44 percent at Rs.382.75; Sesa Sterlite, up 2.80 percent at Rs.237.20; Cipla, up 2.61 percent at Rs.658.35; ICICI Bank, up 0.90 percent at Rs.361.85; and Hindustan Unilever, up 0.87 percent at Rs.824.45.

The major Sensex losers were: Bharti Airtel, down 2.08 percent at Rs.369.85; Hindalco Inds, down 1.84 percent at Rs.165.75; BHEL, down 1.56 percent at Rs.273.95; Mahindra and Mahindra, down 1.51 percent at Rs.1,266.10; and Tata Power, down 1.44 percent at Rs.89.25.