Sensex up 34 points; profit-booking trims gains

The BSE Sensex erased initial gains on Wednesday and closed barely 34 points up at 17,392.39 on profit booking after the surge markets had made following the lending rate cut by RBI.

Sensex was also pulled down by weak European openings after it had made gains in line with Asian markets. Besides, a spurt in retail inflation to 9.47 per cent in March, up from 8.83 per cent in February made investors cautious.

Auto, healthcare, oil & gas and metal stocks attracted buying.

The BSE 30-scrip Sensex opened higher at 17,447.26 and moved between 17,522.80 and 17,371.93. It closed at 17,392.39, up 34.45 points or 0.20 per cent from its last close. It had gained over 263 points in the last two sessions.

The market spurt yesterday after the Reserve Bank cut lending rate by 0.50 per cent to spur economic growth.

The NSE 50-scrip index Nifty gained 10.30 points or 0.19 per cent to end at 5,300.

"Market opened on an enthusiastic note on optimism after RBI cut the interest rates by more than expected. Positive closings in the US markets too buoyed the sentiments," said Shanu Goel Research Analyst Bonanza Portfolio.

"However, apart from profit-booking, sentiments were further hurt as European markets opened on a negative note," she said.

In Asia, key indices in China, Taiwan Hong Kong, Japan, Singapore and South Korea gained by up to 2.14 per cent. However, in Europe, CAC (France), DAX (Germany) and FTSE (Britain) were down by up to 1.05 per cent in the afternoon.

Of the 13 sectoral indices, top gainers were BSE-Auto -1.52 per cent, Healthcare - 1.01 pc, Oil & Gas - 0.77 pc and Metal - 0.75 pc.