Sensex advances 70 points in volatile trade; IT stocks gain

Sensex advances 70 points in volatile trade; IT stocks gain
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Mumbai: The benchmark BSE Sensex recovered 70 points in opening trade on Wednesday on gains in IT, banking and auto stocks despite weak Asian cues.

The 30-share index, which had lost 72.46 points in the previous session, recovered by 70.65 points or 0.20 per cent to 34,841.70 in a volatile trade.

Strong gains in the rupee after forex inflows also improved the market sentiment. The rupee recovered sharply by 25 paise to hit a high of 63.78 against the US dollar in early trade. The rupee had opened down by 3 paise on Wednesday.

Foreign investors had put in Rs 693.17 crore in stocks on net basis on Tuesday.

The National Stock Exchange index Nifty gained 21.75 points or 0.20 per cent to 10,722.20 with 19 of its components trading in the positive.

Brokers said besides selective purchases by cautious investors, sustained foreign fund inflows influenced the sentiment.

Infosys and TCS rose up to 2.24 per cent as investors indulged in expanding their positions.

ICICI Bank, Axis Bank and SBI also rose up to 2.63 per cent in early trade. Bajaj Auto gained 1.42 per cent.

Tata Motors, however, was the biggest loser among Sensex components with losses of 1.40 per cent. Reliance Industries, Kotak Bank, HDFC Bank and ITC also declined up to 1 per cent, capping the Sensex gains.

Among Asian markets, Hong Kong Hang Seng moved down 0.51 per cent, while Japan’s Nikkei shed 0.43 per cent in early trade on Wednesday. Shanghai Composite Index too inched lower by 0.01 per cent.

The US Dow Jones Industrial Average ended 0.04 per cent lower in Tuesday’s trade.

PTI