Sensex erases early losses to end 35 points higher

The BSE benchmark Sensex today erased initial losses to end higher by 35 points at 21,809.80 on fag-end value buying by funds in blue-chip stocks, mainly in capital goods and realty sectors, amid inflation softening to nine-month low of 4.68% in February.

After losing 144 points in early trade, the Sensex bounced back to close higher by 35.19 points, or 0.16%, at 21,809.80. It had lost 81.61 points in the previous session. The National Stock Exchange index Nifty improved by 11.10 points, or 0.17%, to 6,504.20, after touching a low of 6,432.70.

Marketmen said stocks recovered in the last one-hour on value buying in blue-chips available at attractive levels. The upsurge was supported by reports that the inflation fell to nine-month low of 4.68% in February, raising hopes that RBI will cut interest rate.

In 30-BSE index components, 15 stocks gained and 14 ended with losses. Tata Power held steady at Rs 83.15. Major gainers were Dr Reddy's Labs, Sun Pharma, Reliance Industries, Hero MotoCorp, Infosys, Larsen and Toubro, Mahindra and Mahindra, BHEL and Cipla. The capital goods sector index gained the most by rising 1.85% to 11,609.65 followed by realty sector by one% to 1,387.68. Auto index rose by 0.94% to 12,808.16 and healthcaare by 0.81% to 10,196.57.