BSE Sensex recovers after five days of falls; Reliance Industries, ITC gain

Written by Reuters | Mumbai | Updated: May 5 2014, 19:54pm hrs
BSE SensexBSE Sensex had lost almost 472 points in the previous five sessions.
The BSE Sensex gains 0.7 percent while the broader Nifty gains 0.5 percent, recovering after falling for five consecutive sessions and posting their worst weekly falls in three months.

Blue chips lead gains with Reliance Industries (RIL) gaining 3.1 percent after the energy conglomerate fell 4.21 percent in the five sessions until Friday compared to a more than the 2.1 percent fall in the Nifty during the same period.

ITC Ltd is up 1.26 percent after falling 3.7 percent during the five previous sessions.

The gains come even as Asian shares falter after a survey of Chinese manufacturing disappointed, while the simmering conflict in Ukraine kept gold and bonds well bid.

Shares in Reliance Communications Ltd fall as much as 3.8 per cent after its consolidated net profit dropped more than expected in the January-March quarter.

Overseas investors bought Indian shares worth 3.87 billion rupees ($64.3 million) on Friday but sold index futures worth 2.43 billion rupees, provisional exchange data shows.

Foreign investors offloaded nearly 21 billion rupees worth of index futures over five straight sessions till Friday.

BSE Sensex opens weak on profit-booking

The benchmark BSE Sensex opened weak for the sixth straight day by falling 16 points in early trade today as cautious participants engaged in booking profits amid a weakening trend overseas.

The 30-share barometer fell by 16.00 points, or 0.07 per cent, to 22,387.89 with stocks of auto, banking, metal and PSU sectors remaining under pressure. The index had lost almost 472 points in the previous five sessions.

Similarly, the National Stock Exchange index Nifty moved down by 4.00 points, or 0.06 per cent, to 6,690.80.

Brokers said sustained selling by participants, mostly of a profit-booking nature ahead of the outcome of the ongoing Lok Sabha elections and a weak trend at other Asian markets after China manufacturing weakened further in April, influenced the trading sentiments here.

Meanwhile in Asia, Hong Kong's Hang Seng was down 0.29 per cent in early trade today, while Japan's financial markets are closed for a public holiday.

The US Industrial Average ended 0.28 per lower in the previous session.