Sensex gains 154 pts on higher capital inflows

The benchmark BSE Sensex surged

about 154 points and the NSE Nifty reclaimed the 9,800-

level in early trade today, enthused by higher capital inflows

by domestic investors.

The strong start came in the face of sharp jump in

inflation numbers, which were released on Monday.

The 30-share barometer, which had gained 235.44 points in

the previous session on Monday, was trading higher by 153.61

points, or 0.48 per cent, at 31,602.64, with FMCG, auto,

power, consumer durables, IT, metal and realty stocks leading

the gains. Markets remained closed yesterday on account of

Independence Day.

On similar lines, the NSE Nifty was up by 36.60 points,

or 0.37 per cent, at 9,830.75 points.

Brokers said sentiment remained upbeat on the back of

persistent buying by domestic institutional investors (DIIs)

even as retail inflation jumped to 2.36 per cent in July.

Wholesale inflation too rose sharply to 1.88 per cent in

July -- first rise in five months -- as some food articles

turned dearer even as the industry pitched for cut in interest

rates citing weak industrial activity.

Brokers also said a mixed trend at other Asian markets as

fears receded over a potential clash between the US and North

Korea and overnight gains at Wall Street also influenced

sentiments here.

Globally, Hong Kong's Hang Seng was up 0.45 per cent,

while Japan's Nikkei gained 0.02 per cent in their early

trade. Shanghai's Composite index, however, down 0.10 per

cent.

The US Dow Jones Industrial Average ended 0.02 per cent

higher yesterday.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)