Stocks lose tempo, but stay positive for 3rd day
Stocks consolidated their gains
today after US Fed minutes signalled uncertainties over near-
term rate hikes.
RBI's own concern over inflation in its minutes dragged
banking stocks down. Auto and healthcare shares too registered
"Investors showed confidence despite some volatility
after the US Fed's minutes stating uncertainties over near
term rate hikes due to benign inflation. The opportunity from
recent correction and the announcement of share buyback from
IT major supported sentiment," said Vinod Nair, Head of
Research, Geojit Financial Services.
The benchmark Sensex, which stayed up for most part of
the day, hit a high of 31,937.51 on the back of rally in the
Infosys stock following the company's buyback proposal and
unabated buying by domestic institutional investors.
However, it succumbed to profit-booking before closing up
by 24.57 points, or 0.08 per cent, at 31,795.46. The gauge had
gained 557.30 points in the previous two sessions.
The NSE Nifty, after recapturing 9,900, advanced to hit a
high of 9,947.80, but ended at 9,904.15, up 6.85 points, or
0.07 per cent.
Infosys, the country's second largest IT exporter, zoomed
most by 4.54 per cent, after the company said the board will
take up a proposal for buyback of shares on Saturday, helping
the key indices post gains for the third day in a row.
Mid- and small-cap indices closed mixed.
Traders said volatility crept in due to emergence of
sudden selling in the last half an hour of the session, which
took away much of the day's gains.
Global leads were not too supportive as Asian shares
remained indecisive and European stocks opened lower despite
easing tensions involving North Korea.
Coal India was the second-biggest mover (4.22 per cent).
NTPC and Bharti Airtel advanced too.
While IT, technology, PSU indices all firmed up, selling
pressure pushed down rate-sensitive stocks such as auto and
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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