Sensex registers modest gain in volatile trade

Mumbai, June 5: The Sensex today settled in the green on the Bombay Stock Exchange (BSE) with a modest gain of 39.24 points at 14,535.01, buoyed by a rebound in Chinese bourses, which in turn triggered a recovery in other Asian markets as well.

It had touched a high of 14,571.31 and a low of 14,432.67 during intra-day, after opening firmer at 14,514.20 from the previous close of 14,495.77.

''The BSE Sensitive Index had moved between positive and negative territory earlier during the day. It witnessed a recovery in the second half of the trading session to settle with modest gains, as buying emerged for index pivotals from afternoon trade. Volatility was the hallmark of today's trade, with Sensex swinging sharply.

A strong recovery in markets across the globe, led by rebound in China, aided recovery in domestic markets. Buying was seen in information technology (IT), banking stocks and in select pivotals,'' market analysts observed.

The broader 50-stock Nifty Index also registered a gain of 17.60 points on the National Stock Exchange (NSE) to settle on positive terrain at 4,284.65 from its previous close of 4,267.05.

After opening marginally higher at 4,268.90 it had reached a high of 4,292.50 and a low of 4,249.10 during intra-day trade.

The total turnover on the premier BSE was around Rs 3,776 crore.

Market pundits disclosed that the market breadth was positive here as 1,318 shares advanced and 1,270 declined, while 90 remained unchanged. They pointed out that the market breadth had turned negative in mid-morning trade compared to a positive breadth in early trade and added that among the Sensex pack, 18 pivotals advanced, while the rest declined.

The prominent gainers today were SBI, TCS, Infosys Technologies, Wipro, I-flex solutions, Reliance Energy (REL) and Reliance Industries (RIL).

The major losers included ITC, L&T, Gujarat Ambuja Cements, and Cipla.

China's Shanghai Composite recovered on rumours that Chinese authorities would make a policy statement to restore investor confidence, after a 7 per cent slide earlier in the day. The Shanghai Composite Index was up 96.70 points, or 2.63 per cent, to 3,767.10. Chinese markets have tumbled ever since the government, late last month, tripled a share-trading tax to cool its red-hot market. However, the Chinese market fall has failed to trigger a broad rout in global equity markets, which some had feared.

Boosted by strong recovery by Shanghai Composite, other Asian and European markets also gained. Hong Kong's Hang Seng index was up 112.56 points, or 0.54 per cent, to 20,842.15.

Japan's Nikkei 225 Stock Average ended above the 18,000 level for the first time in about three months today, tracking the steady increases in the US market and investors' confidence in Japanese companies. The Nikkei index rose 80. 39 points or 0.45 per cent, to close at 18,053. 81.

Wall Street recovered from a mostly down session yesterday, eking out a gain as investors brushed off another slide in Chinese stocks. The Dow Jones Industrial Average (DJIA) rose 8.21 points, or 0.06 per cent, to 13,676.32. Broader stock indicators were also narrowly higher. The S&P 500 index was up 2.84 points, or 0.18 per cent, to 1,539.18, and the Nasdaq Composite index moved up 4.37 points, or 0.17 per cent, to 2,618.29.

Oil prices eased today as the Middle East cyclone fears waned.

But concerns over gasoline supply in the US kept crude above the USD 70 mark. London Brent crude shed a cent to USD 70.39 a barrel, after climbing USD 1.33 yesterday, on concerns that the storm could disrupt shipping and output in the Middle East. US light crude fell 18 cents to USD 66.03 a barrel, dealers added.

UNI