Sensex up by 81 pts; IT stocks surge

Amid mixed signals of lower growth in core industries in July and positive trends in global stocks, the Sensex today closed higher by over 80 points to complete five straight days of gains on handsome gains in shares of IT companies.

Marketmen said the key index gained as investors and traders covered short positions and rolled over to the next series ahead of the expiry of August contract of the Futures & Options (F&O) on Thursday.
     
They said encouraging Asian markets also boosted the sentiment here. Wall Street had yesterday ended higher after President Barack Obama picked up Ben Bernanke to continue as Federal Reserve Chairman. Strong US economic data and consumer confidence also helped US stocks, they said.
 
The Bombay Stock Exchange 30-share Sensex settled the day at 15,769.85, a rise of 0.52 per cent or 81.38 points, from its previous close.

In straight five days, Sensex gained 880 points which helped it touch the the three-week high of 15,831.49.
     
The barometer also touched a low of 15,695.94 in mid- afternoon after reports of core industries growth slipping to 1.8 per cent in July against 5.1 per cent a year ago.

However, it recovered later to complete the five straight days of gains.
     
IT stocks Infosys, TCS, Wipro and Tech Mahinra surged after weakening rupee raised hopes of better revenue for software companies.

Infosys was up by 4.07 per cent at Rs 2,181.35 points and TCS gained 3.37 per cent to Rs 548.30, Wipro 2.34 per cent to Rs 557.25 and Tech Mahindra 3.38 per cent to Rs 921.10

Realty sector and tech indices were the next best gainers at 1.23 per cent 2.50 per cent respectively.
      
However, FMCG, Consumer Durable and Banking sector index fell on heavy off-loading by funds.
      
As the undercurrent of the market remained firm, smallcap index rose by 1.97 per cent to 6,878.35 points and midcap index by 1.10 per cent to 5,800.55 points.