Sensex loses gains on profit-booking, ends 64 points higher

Sensex loses gains on profit-booking, ends 64 points higher

Mumbai: The benchmark Sensex closed with a gain of over 64 points, as it lost most of its morning gains due to profit-booking at the fag end of the session.

The 30-share index touched the day’s high of 19,297.01 and a low of 18,930.31 points.

The Nifty also closed higher by 17.05 points at 5,634.60, after touching a high of 5,725.00 and a low of 5,612.10 points.

Afternoon trade

The Sensex pared some of its early morning gains due to profit-taking during the noon trade. Still, the index was up nearly 182 points at 19,129 at 2:45pm, having come down from the day’s peak of 19,297.01.

“The markets rose on expectations of a US Fed rate cut and possibly higher inflows," said Naresh Garg, chief investment officer at the Sahara Mutual fund.

“We could see greater volatility ahead of the Fed meeting," he said.

The US Federal Reserve meets on 11 December to decide on monetary policy amid concerns about a slowing US economy.

The rupee also rose against the dollar to 39.70 from its previous close of 39.80 on hopes of higher overseas fund flows into emerging market equities.

Morning trade

The Bombay Stock Exchange benchmark Sensex rose 358 points in early trade today on aggressive buying by funds in fundamentally strong shares.

The 30-share index, which remained weak for the last two days, bounced back by 358.23 point to 19,297.10 points in the first five minutes of trade as index related shares like Reliance, Infosys and ICICI bank recorded smart gains.

The 50-share Nifty of the National Stock Exchange too moved up by 107.45 points to 5,725 points.

A firming global trend also boosted the trading sentiment to some extend. Yesterday, Wall Street rose for second day in a row on hopes of another US interest rate cut to bolster the economy. Today most of the Asian stocks are trading in the green.

Liquor maker Shaw Wallace & Co was trading 7% higher at Rs433.30 after its board approved merging the firm with group company United Spirits Ltd. Shaw Wallace shareholders will get four United Spirits shares for every 17 held. United Spirits was up 2.1% at Rs1,890.

Sical Logistics rose to a high of Rs248 rupees on Foreign Investment Promotion Board approval for Old Lane Mauritius IV Ltd’s $26 million investment in Sical’s new infrastructure unit, Sical Infra Assets Ltd.