Sensex gains 44 points, ends at two-week high at 26,394.01

Benchmark Sensex surrendered much of its early gains on Tuesday on widespread caution ahead of release of GDP data as it ended at over two-week high of 26,394 on sustained buying amid mixed global cues.

Auto, telecom, consumer durables, energy, industrials and capital goods stocks firmed up on good buying, while IT, FMCG, banking and metal counters slipped on profit-booking. This was the third straight session of gains for the 30-share index, which rose 43.84 points or 0.17% to close at 26,394.01, its highest closing since November 11, when it had ended at 26,818.82. Intra-day, it shuttled between 26,587.07 and 26,354.66. The gauge has risen by 533.84 points or 2.06% in three days. The NSE Nifty, after touching a high of 8,197.35, slipped to 8,128.70 before closing 15.25 points, or 0.19%, higher at 8,142.15. "With bulk of earnings numbers out, markets would now focus on macros, especially with many, including GDP and PMI figures, due for release in the next two days," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services Market is also tracking Wednesday's OPEC meeting, where producers are likely to discuss output cuts.

Sentiment remained upbeat for the better part of the day after the government on Monday provided yet another opportunity to black money holders to legalise their wealth, brokers said. The government has proposed to tax at 50% the unaccounted demonetized cash that is disclosed voluntarily till December 30, after which a steep up to 85% tax and penalty will be levied on undisclosed wealth that is discovered by authorities. Meanwhile, Fitch Ratings on Tuesday lowered India's GDP growth forecast for this fiscal to 6.9% from 7.4%, saying there will be "temporary disruptions" to economic activity post demonetization.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,436.40 crore on Monday, as per provisional data released by the stock exchanges. Overseas, Asian stocks closed on a mixed note ahead of key global events scheduled for this week, including tomorrow's meeting between the world's largest oil producers and the release of US non-farm payroll report on Friday. Key Asian indices like China, Singapore and South Korea moved up by 0.01% to 0.18%, while Hong Kong, Japan and Taiwan declined by 0.27% to 0.41%. European shares were trading lower in their afternoon trade with commodities-related stocks coming under renewed selling pressure after a sharp decline in metals and oil prices.

Key indices in France and Germany rose by 0.32% to 0.86% while UK's FTSE quoted lower by 0.42%. The rupee recovering from this year's lowest closing too buoyed sentiment. The currency ended the day at 68.65 against the US dollar, up 11 paise. In line with the overall trend, BSE Small-cap index ended 0.55% higher, while Mid-cap index rose 0.53% as investors were seen widening their portfolios. Of the 30-share Sensex pack, 18 scrips ended higher. Major gainers were Maruti (3.96%), Asian Paints (2.17%), Bharti Airtel (2.11%), Gail (2.07%), Hero MotoCorp (2.05%), M&M (1.88%), Adani Ports (1.51%) and Coal India (1.23%). However, Axis Bank fell by 1.59%, followed by Sun Pharma (1.05%), ITC (0.99%), TCS (0.83%), Infosys (0.71%), NTPC (0.70%) and Power Grid (0.55%). Among BSE sectoral indices, auto rose 2.20%, telecom 2.04%, consumer durables 0.93%, industrials 0.58%, energy 0.30%, capital goods 0.26% and realty 0.26%. However, IT fell 0.51%, followed by FMCG (0.47%), bankex (0.39%) and metal (0.17%). Market breadth remained positive as 1,570 shares ended higher, 1,028 closed lower while 199 ruled steady. Total turnover fell to Rs 2,875.88 crore from Rs 3,011.61 crore yesterday.