The Bombay Stock Exchange benchmark Sensex today closed up by over 60 points erasing early losses on selective buying in telecom shares after the RBI late last night said telcos can use money raised abroad to take part in the 3G spectrum auction.
The 30-share Sensex, which fell 92 points in early trading, bounced back to close with a gain of 64.09 points at 17,189.31.
Marketmen said a higher opening in European stock markets helped the Sensex to rebound despite food inflation rising over 19% for the week ended November 28.
Mobile majors Bharti Airtel rose 3.43% and Reliance Communication 2.78%.
National Stock Exchange index Nifty rose by 22.65 points to close at 5,134.65
Marketmen said major construction companies also attracted buying on extending after the central bank extended the period to December 31, 2010 for real estate sector to raise overseas funds for developing integrated townships.
In the 30-BSE Sensex kitty shares, 16 closed with gains, while 14 ended with losses. Shares in the capital goods, bank, power, technology and metal gained the most on fresh buying.
The capital goods sector, which comprises heavy engineering stocks such as Larsen and Toubro and BHEL, gained the most by 1.63% to 13,790.01. Larsen rose by Rs32.30 to Rs1,686.55 and BHEL by Rs61.95 to Rs2,292.40.
The banking index was the second biggest gainer, rising 0.75% to 10,231.40 as shares of ICICI Bank jumped up by Rs20.95 to Rs876.25, and Axis Bank by Rs5.30 to Rs1,021.60.
Shares of Satyam Computer Services rose by Rs5.40 to Rs108.05 after it agreed to settle a dispute with the UK's Upaid Systems. Tech Mahindra, the owner of Satyam, climbed Rs21.85 to Rs1,017.
The power index gained 0.71% to 3,034.67, PSU index by 0.55% to 9,338.40, Technology index by 0.47% to 3,177.90, metal index by 0.40% to 16,380.66, and oil and gas index by 0.33% to 10,424.13.
However, a fall in consumer durables, FMCG, information technologies, auto, healthcare and realty sectors, checked the rally.
As the buying activity spilled over a wide front, smallcap index moved up by 0.89% to 8,027.45 and midcap index by 0.28% to 6,614.04.
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