Sensex inches up 27 pts;consumer durables, telecom stocks rise

After climbing to over 10-week high of 17,526.82, the BSE benchmark index pared a substantial portion of its 128-point rise and ended 26.73 points higher at 17,425.73 at closing.

Among the 30-share Sensex, 16 stocks including Bharti Airtel, Hindalco, HDFC and Coal India ended higher while 14 scrips including BHEL, Jindal Steel, TCS and ITC dropped.

Brokers said trading sentiment in the morning session improved on fresh capital inflow after the rupee rose to a 1-month high of 54.86. However, monsoon worries surfaced again with Agriculture Minister Sharad Pawar saying monsoon rains have been 31 per cent below average up to July 2.

FMCG sector which gets a boost in sales with a good monsoon helping rural India saw selling emerge. ITC and HUL shares shed over 1 per cent each.

"Markets turned volatile in the late afternoon and slipped into red. But, they recovered a little in the last half an hour of session and managed to close in green," said Shanu Goel, Senior Research Analyst, Bonanza Portfolio.

IT stocks including TCS and Infosys also ended lower today after FII brokerage Macquarie downgraded the domestic information technology sector.

The gains in Sensex were supported by telecom stocks amid reports that existing players may not have to pay the auctioned arrived price for their additional spectrum. In the realty pack, DLF with 4.3 per cent rise led gains.

Similarly, the 50-share National Stock Exchange index Nifty closed 9.35 points up at 5,287.95.