Sensex does U-turn on SBI Q1 numbers to end up by 4 pts

Mumbai, Aug 12 (PTI) Robust June quarter earnings by
banking major SBI helped the BSE benchmark Sensex to end
marginally higher by four points Thursday, reversing early
losses suffered due to rising food prices and falling factory
output.
After falling by a steep 155 points to trade below the
18,000-level on selling triggered by two weak economic
indicators, the 30-share barometer of the Bombay Stock
Exchange recovered the lost ground to settle at 18,073.90, up
3.71 points, or 0.02 per cent.
The Sensex was the only major Asian index to end in the
green Thursday.
The National Stock Exchange's 50-share Nifty index,
however, ended in the red, with a loss of 0.08 per cent at
5,416.45 points.
Marketmen said the investor sentiment took a beating with
food inflation rising to double digits again at 11.4 per cent
for week ended July 31 and industrial production falling to
7.1 per cent in June, the lowest in 13 months.
However, State Bank of India's 25 per cent jump in
April-June quarter profit trickled in like a god-send, lifting
the plunging market sentiment, they said.
SBI shares rallied over 7 per cent and helped the banking
index to gain 1.68 per cent, the best among all sectoral
indices.
Analysts said persistent foreign fund inflows are helping
the market to consolidate and even if there is a fall in the
coming days, it will be capped by them.
"FIIs are bullish about the India story in the long term
and any negative news will impact for a very short period,"
domestic brokerage house Anand Rathi's Research Head D D
Sharma said.
Mahindra & Mahindra rose 0.71 per cent, after the
utility vehicles major said it has been chosen as the
preferred bidder for acquisition of beleaguered South Korean
vehicle maker SsangYong Motor.
Reliance Industries, which carries the maximum weight on
the Sensex, lost for another day and settled with a loss of
1.11 per cent at Rs 971.60.
"RIL is underperforming these days. It has lost its steam
but will recover in the long term," Delhi-based SMC Capitals
Equity Head Jagannathan Thunuguntla said.
The IT sector, too, continued its losing streak in view
of concerns about US economic growth. Infosys lost 1.1 per
cent, Wipro 1.30 per cent and TCS 0.22 per cent.
In the 30-BSE index components, 18 stocks ended with
losses, while 12 closed in the positive zone. MORE PTI SKR
RDM


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