Mumbai: After jumping over 100 points, the Sensex today pared some gains to close just 33 points higher, amid investors adopting a cautious approach ahead of the much-awaited ECB policy meeting later in the day.
The BSE benchmark index, which had lost 128 points in the previous session, commenced lower today but rose to day’s high of 17,418.40 on hopes of a bond buying announcement when European Central Bank’s governing council meets in Frankfurt.
Domestic investors, however, became cautious as the session progressed amid selling in ITC, which slumped 2.7 per cent. HDFC Bank and Bharti Airtel that fell 1-2 per cent also dragged the 30-share Sensex lower.
On similar lines, the National Stock Exchange index Nifty rose by 12.70 points to 5,238.40, after dipping to 5,217.65.
Traders said good buying support in Infosys, ICICI Bank, Wipro, TCS and Tata Motors provided support to the index as it closed 32.93 points higher at 17,346.27.
IT stocks were in demand as the rupee touched 56.03, its lowest against dollar in almost a month, will likely help companies notch gains as sales in rupee terms will get a boost, said dealers.
“Markets showed strength but also showed profit booking during last hour. Bullish investors have not been able to take control,” said Puneet Kinra, Senior Technical Analyst, Bonanza Portfolio.
Buying activity slowed on reports that the Planning Commission is proposing to lower annual the country’s average economic growth rate to 8.2 per cent in the 12th Five Year Plan (2012-17) from 9 per cent envisaged earlier.
Market experts said global sentiment was largely positive on firming Asian and European trends as investors waited for European Central Bank to give details of its plan to stem the region’s debt crisis.
Meanwhile, uproar over coal block issue paralysed proceedings of Parliament for 12th consecutive day today, drowning most of the Monsoon Session which ends tomorrow.