Mumbai: The Sensex rose 40.36 points on Monday tracking firmer Asian markets, but trade remained choppy with investors still uncertain a correction had run its course.
Analysts said the outcomes of central bank meetings in Japan and the United States would be closely scrutinised. Japan’s central bank is meeting on Monday and Tuesday, while the US Fed concludes its two-day meeting on Wednesday.
At 11:08 am, the 30-issue key BSE index was up 40.36 points at 12,471, with 23 of its components trading in positive territory.
“The confidence is not there. We are unable to sustain at higher levels,” said Sejal Doshi, chief executive at Mumbai brokerage FinQuest Securities.
The benchmark index, which fell 3.5% last week, is down more than 15% from its 9 February peak of 14,723.88.
Doshi said the market would remain rangebound until global markets fully stabilise, but added the benchmark index was unlikely to fall below 12,000 levels.
Brokerage HDFC Securities said in a note the BSE would find strong support in the 12,300 to 12,400 band.
Leading explorer Oil and Natural Gas Corp. Ltd gained 1.7% to Rs775. Technical charts showed the stock had fallen close to the oversold region, as measured by a 14-day relative strength index.
Top mobile firm Bharti Airtel Ltd rose 0.93% to Rs724 after media reports said the group might consider an initial public offering for its telecom equipment company.
But ITC Ltd slipped 1.9% to Rs142.30, while top private sector lender ICICI Bank was down 0.6% at Rs806.
In a broader market, 952 gainers marginally beat 857 losers on volume of 28.7 million shares. The 50-issue NSE index gained 0.38% to 3,622.20 points.