Late recovery keeps key indices on positive note

Benchmark indices Sensex and Nifty got back on the winning track after a day's hiatus on Monday, with gains mainly in financial and IT stocks making amends for losses in metal and energy counters. Marking its fifth gain in the last six sessions, the BSE gauge Sensex ended 125.13 points or 0.23 per cent higher at 54,402.85. Intra-day, the index rose to a high of 54,584.73 and slipped to a low of 54,124.27. Likewise, the broader NSE Nifty advanced 20.05 points or 0.12 per cent to 16,258.25.

"Domestic equities traded sideways today, and profit-booking was seen at tops. Notably, financials and IT supported market and arrested fall, while most key sectoral indices traded in red today. Visible economic recovery indicating strong credit growth in subsequent months and likely opening of complete economy eased concerns with regards to asset quality of banks, which essentially aided financials on Monday. RBI's continued soft monetary policy stance to support ongoing economic recovery augurs well for domestic equities," said Binod Modi, head (strategy) at Reliance Securities. On the Sensex chart, M&M was the top gainer, rising 2.18 per cent, followed by Axis Bank, Tech Mahindra, Bajaj Finserv, IndusInd Bank, Asian Paint and PowerGrid. On the other hand, Bharti Airtel, Tata Steel, NTPC, L&T, Reliance Industries and and Bajaj Finance were among the laggards. Of the Sensex constituents, 19 shares clocked gains and 11 suffered losses. Of the 19 sectoral indices, 15 closed in the red and only 4 saw gains. BSE Bankex, IT, Teck and Finance indices gained up to 0.64 per cent. While, among the major losers were metal, telecom and oil and gas – sliding as much as 1.54 per cent. Broader midcap and smallcap indices fell up to 1.07 per cent. Largecap managed to end in positive zone.