Fag-end selling tapers early gains, indices end marginally higher

Mumbai: Equity benchmarks Sensex and Nifty on Tuesday closed moderately higher after a fag-end sell-off minimised the handsome gains posted in early trading.

Besides, investors opted for profit-taking ahead of the start of corporate earnings season and macroeconomic data announcements later this week, traders said.

After rising sharply during the day, the 30-share BSE Sensex trimmed most of the gains during the fag-end and ended marginally higher by 30.99 points or 0.04 per cent at 71,386.21. During the day, it jumped 680.25 points or 0.95 per cent to 72,035.47.

The Nifty also gave up most of the intra-day gains and ended 31.85 points or 0.15 per cent up at 21,544.85. During the day, it climbed 211.45 points or 0.98 per cent to 21,724.45.

Among the Sensex firms, Larsen & Toubro, Bharti Airtel, HCL Tech, Tata Motors, Sun Pharma and Tata Steel were the major gainers.

On the other hand, Nestle, Asian Paints, Bajaj Finserv, HDFC Bank and Axis Bank were among the laggards.

In Asian markets, Tokyo and Shanghai settled higher, while Seoul and Hong Kong ended lower.

European markets were trading mostly lower. The US markets ended with significant gains on Monday.

"Positive sentiments in the Indian IT sector, fuelled by a US tech rally and demand on emerging technologies, overshadowed the anticipated muted Q3 results of the sector.

"Market optimism about potential softening of US inflation is driving expectations of near-term rate cuts, bolstering overall sentiment. But in-between profit-booking is emerging due to mixed cues from Asian markets as well as high valuation concerns," said Vinod Nair, Head of Research, Geojit Financial Services.

The BSE benchmark tanked 670.93 points or 0.93 per cent to settle at 71,355.22 on Monday. The Nifty declined 197.80 points or 0.91 per cent to 21,513.

Foreign Institutional Investors (FIIs) bought equities worth Rs 16.03 crore on Monday, according to exchange data.

Global oil benchmark Brent crude climbed 1.72 per cent to USD 77.43 a barrel.

Gold steady, silver adds glitter

Gold price remained flat at Rs 63,200 per 10 grams in the national capital on Tuesday, according to HDFC Securities.

However, silver climbed Rs 450 to Rs 76,750 per kilogram. It settled at Rs 76,300 per kg in the previous trade.

"Gold prices steadied on Tuesday in the Delhi markets, trading flat at Rs 63,200/10 grams, unchanged from the previous close," Saumil Gandhi, senior analyst of commodities at HDFC Securities, said.

In the futures trade, the February contract of gold rose Rs 261 to Rs 62,356 per 10 grams on the MCX. Also, the March contract of silver advanced Rs 176 to Rs 72,603 per kilogram on the exchange.

In the global markets, gold and silver are trading marginally higher at $2,031 per ounce and $23.10 per ounce, respectively.

Spot gold at Comex was trading at $2,031 per ounce, up by $2 from the previous close in the international markets.

Navneet Damani, senior VP of commodity research at Motilal Oswal Financial Services, said gold traded steady after inching lower in the previous session as stronger-than-expected US labour data saw markets reconsider expectations for early monetary policy interest rate cuts.

Rupee gains

Rising for the fifth straight session, the rupee appreciated 3 paise to close at 83.11 (provisional) against the US dollar on Tuesday, tracking positive equity market and foreign fund inflows.

At the interbank foreign exchange market, the local unit opened strong at 83.07 and traded between the peak of 83.04 and the lowest level of 83.13 against the greenback during the session.

It finally settled at 83.11 (provisional) against the dollar, registering a gain of 3 paise from its previous close.

The domestic currency settled 1 paisa higher at 83.14 on Monday, a day after gaining 9 paise.

Analysts said investors will keep a close watch on domestic inflation numbers as well as the data from the US to be released later this week.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 per cent higher at 102.10 on Tuesday.