Rebound in metal, auto stocks helps Sensex end at new peak

The benchmark Sensex today erased initial losses and closed about six points up at a new closing peak of 26,442.81, extending gains for the fourth straight session, on recovery in select metal and auto scrips combined with buying in defensive sectors like FMCG and healthcare.
The S&P BSE 30-share barometer resumed lower in line with weak Asian cues and moved in a range of 26,481.97 and 26,314.89. It ended at new closing high of 26,442.81, logging a small rise of 5.79 points, or 0.02 per cent. In four straight sessions, the Sensex has gained over 128 points.
However, the broader 50-issue CNX Nifty of the NSE eased for the second straight day and closed at 7,904.75, a fall of 1.55 points, or 0.02 per cent. It moved between 7,862.45 and 7,915.45 intra day on alternate bouts of selling and buying.

Brokers said investors have slowly come to terms with the potential impact of the Supreme Court's ruling on coal block allocations. As a result, Hindalco, Tata Steel, JSW Steel, Hindustan Zinc and SAIL rebounded from their early lows.
However, some counters like Jindal Steel and Bhushan Steel continued to suffer.
Heavy selling was initially seen after Competition Commission of India imposed Rs 2,545 crore fine on 14 car makers, including Tata Motors, Maruti Suzuki and Mahindra & Mahindra, for violating trade norms in the spare parts and after services market.

However, short-coverings ahead of the expiry of August contract on Thursday aided the smart recovery in auto as well as metal stocks also, trader said.

Some shares from power, capital goods and refinery sectors attracted profit-booking while pharma and FMCG were in demand as investors tried to seek safe refuge, they added.
"The Sensex closed marginally higher and CNX Nifty closed marginally lower after witnessing intraday volatility...Going ahead, volatility is expected to continue as F&O expiry and GDP numbers are due on Thursday and Friday," said Jayant Manglik, President-retail distribution, Religare Securities.