Sensex ends higher by 35 points

Erasing initial losses, the BSE benchmark Sensex on Monday ended higher by 35 points as investor sentiment was boosted by easing inflation.

The 30-share Sensex declined to 16,037.60 in the opening trade but recovered to close higher by 34.74 points at 16,189.36.

Broader NSE Nifty edged up 7.90 to 4,873.90 points.

Brokers said headline inflation falling to a two-year low of 7.47% in December strengthened the hope that the Reserve Bank will cut lending rates in near future.

Markets, however, remained under pressure following a a weak trend in the Asian region and lower opening in Europe after Standard and Poor’s stripped France of its top credit rating and cut rating of eight other euro-zone nations.

The uptrend was mostly supported by stocks in capital goods, IT, teck and auto sectors. Capital goods sector gained the most at 2.07% by IT at  1.80%.

Infosys was up by 1.88%, TCS by 1.91% to and Wipro 1.57%.

Of 30 Sensex stocks,15 gained while other 15 closed with losses.

Market leader Reliance Industries, however, fell by 2.55%.