Mumbai, Oct 15: The Sensex today recouped early losses and closed 38 points higher amid strong European cues and hopes of good results by RIL later in the day.
After a slow start, the Sensex fell around 78 points to the day's low of 18,596.65 amid data showing inflation rose to its highest level this fiscal at 7.81 per cent in September— a development that may restrain RBI from cutting rates.
“Headline WPI inflation of 7.81 per cent is unlikely to lead to the RBI starting to reduce repo rates on October 30,” said Indranil Pan, Chief Economist, Kotak Mahindra Bank.
However, with the European markets opening strong, buying activity resumed on persistent capital inflows.
The BSE benchmark index closed up by 38.37 points, or 0.21 per cent, at 18,713.55, on buying in FMCG, refinery and realty sectors.
Hindalco, Cipla, Dr Reddy and Tata Power were among the best performers in Sensex.
Brokers said trading sentiment firmed up on hopes of better earnings today by RIL. “After the initial weakness, the markets did get some wings to rise. RIL did its part to support the rise, ahead of its quarterly results,” said Milan Bavishi, Head Research, Inventure Growth & Securities.
Shares of RIL closed 0.54 per cent higher. In 30-share Sensex, overall 18 stocks climbed led by stocks of FMCG and Oil and Gas.
However, Maruti, Sterlite and CIL led 12 losers. The 50-share NSE index Nifty rose by 11.20 points, or 0.20 per cent to 5,687.25, after touching day's low of 5,651.05.
Most Asian stocks ended lower with concerns about Europe keeping investors sidelined amid mixed signals on the state of the Chinese economy.
However, France's CAC, the UK' FTSE and Germany's DAX were up between 0.6-1.3 per cent in afternoon trade.
FIIs pumped in Rs 201.16 crore last Friday as per provisional data with stock exchanges.
