Close: Markets regain losses on European rise

Close: Markets regain losses on European rise

New Delhi: Domestic markets ended in the positive zone after showing high instability during the trading session on Tuesday. Stocks managed to regain losses as sentiments turned upbeat with the positive opening of European markets.

Markets were in the negative terrain through most of the day due to heavy selling pressure mainly on telecom stocks on concerns that lower call charges will reduce their earnings. Trai is contemplating ruling per second billing mandatory, which will impact earnings of companies of the sector.

The Bombay Stock Exchange benchmark Sensex rebounded after Monday’s losses and started the day in the green on firm cues from Wall Street. Despite firm start, investors were cautious on telecom earnings related worries.

Among sectors, most of the buying was witnessed in FMCG, metal, bank, capital goods and power stocks. However, technology, IT and realty stocks remained out of favor and witnessed most selling.

The 30-share BSE Sensex closed higher by 92.13 points or 0.55% at 16,958.54 and 50-share NSE Nifty ended up 24.20 by points or 0.48% at 5,027.40.

Reliance Communication lost 10.64% after the company announced on 5 October that it will offer a flat rate for all calls on its network at 50paise a minute. The scheme, which will replace all existing schemes, has raised concerns of a fresh tariff war.

Bharti Airtel also ended down by 10.22% on reports the auction of 3G telecom services by the government could be delayed, besides, concern that lower call charges will cut earnings.

Larsen & Toubro closed up by 1.56% after winning new orders totaling Rs1,513 crore during the second quarter of FY10.

Top among the gainers from the BSE was Hindalco up by 6.05% to Rs125.30, followed by Hindustan Unilever by 5.55% to Rs281.65, Reliance Infra by 5.17% to Rs1,283.95, ITC Ltd by 3.52% to Rs246.90, Bhel by 3.33% to Rs2,417.10, Sterlite Industries by 3.03% to Rs773.15 and ICICI Bank by 3.02% to Rs938.25.

Losers from the BSE pack are Reliance Communication down by 10.64% to Rs268.25, Bharti Airtel by 10.22% to Rs359.40, ACC Ltd 2.07% to Rs797.50, Wipro by 1.61% to Rs598.70, Sun Pharma by 1.52% to Rs1,407.50 and DLF by 1.38% to Rs416.90.

Asian markets ended mostly higher. Japan’s Nikkei inched up by 0.2% and Hong Kong’s Hang Seng closed 1.9% up on Wall Street rally.