Sensex trims initial gains, still up 71 pts

It retained gains despite other Asian markets offering weak investor cues.

The BSE 30-stock index, Sensex, resumed higher at 18,656 and shot up to 18,743.41. However, it declined afterwards to 18,651.35 before quoting at 18,696.10 at 1030 hrs -- still up 70.76 points or 0.38 per cent from last weekend's level.

The NSE 50-share index, Nifty, also moved up by 20.60 points or 0.36 per cent to 5,684.90 at 1030hrs.

Major gainers were M&M (1.65 pc), Hindalco (1.20 pc), Dr Reddy Lab's (1.16 pc), Tata Power (1.10 pc), Reliance Ind (1.06 pc), ITC (1 pc) and Wipro (1 pc).

The market gains followed the much talked about revamp of the government that has been facing criticism over perceived policy paralysis and corruption allegations.

Besides, ahead of the Reserve Bank's monetary policy review on Tuesday, bankers have said the central bank should focus more on growth as the country can't afford economic expansion of below 5 per cent.

Amid slowing economic growth, industry has been seeking lower interest rate regime and easy money policy.

Asian stocks, meanwhile, erased gains after the opening of Hong Kong trading as developers fell following the city's decision to impose its first property tax targeting overseas buyers.

Key indices in China, Hong Kong, Indonesia, Japan, Taiwan and Singapore fell by up to 0.31 per cent while South Korea's Kospi rose by 0.16 per cent.