Sensex extends gains for third day, ends up 40 points

The benchmark Sensex gained for the third day and moved up by a moderate 40 points today amid buying in select counters on the back of foreign capital inflows and mixed global cues.
The index was at an almost two-week high, buoyed by gains in Infosys, State Bank of India and Larsen & Toubro shares. Realty and capital goods stocks firmed up while consumer durable, FMCG and healthcare sector shares fell.
Appreciation of the rupee against the dollar also boosted market sentiment, a broker said.
The S&P BSE Sensex resumed higher at 20,870.16 and hovered in a range of 20,828.69 to 20,934.40 before ending at 20,890.82, a gain of 40.08 points or 0.19 per cent. That was the highest level since November 6.

The CNX Nifty on the National Stock Exchange moved up 14.35 points, or 0.23 per cent, to 6,203.35. The SX-40 on the MCX Stock Exchange closed 34.80 points up at 12,401.4.
Foreign institutional investors bought a net Rs 1,158.57 crore of shares yesterday, according to provisional data from the stock exchanges.

"Hopefully we can convince FIIs that our reform plans, those announced and upcoming, are good reasons to continue investing in India," said Shrinivas Viswanath, Co-founder of RKSV. "Experts agree that the economy has bottomed out. The worst may be put behind us after the RBI has taken steps to bring in liquidity and the government announced reforms."

The rupee breached 62 against the dollar and firmed up to 61.88 per dollar. It quoted at 62.09 in late afternoon trade.
The dollar weakened against major rivals ahead of US Federal Reserve chief Ben Bernanke's speech later today. Analysts expect Bernanke to speak in favour of retaining the USD 85 billion a month stimulus programme.
The minutes of the Federal Open Market Committee meeting October are expected to be released on Wednesday.
Asian markets ended mixed after hefty gains in the previous session on China's economic reform plans. Key indices in China, Hong Kong, Singapore and Japan declined while indices in South Korea and Taiwan moved up.