Sensex ends higher on value-buying despite price rise, euro crisis

Clawing its way back from early losses,the BSE benchmark Sensex closed 17 points higher on Wednesday despite risingfood inflation and a deepening euro zone debt crisis as investors clung topower, realty and oil and gas stocks while deserting IT, consumer durables andauto firms.

Opening on a weak note in the wake of a three-session losingstreak that saw it shed by 340 points, the 30-share Sensex reversed the declineto close 17.08 points higher at 17,481.93 on fag-end buying in recently beatendown stocks of realty, power and oil and gas firms, which investors adjudgedoverdone.

The gauge saw an intra-day low of 17,278.03 as concerns overa rise in food inflation to 12.21 per cent for the week ended October 22 from11.43 per cent in the previous week, coupled with renewed fears of anexacerbated euro zone debt crisis, gave investors the jitters.

In similar fashion, the broad-based National Stock ExchangeNifty index ended the day higher by 7.30 points at 5,265.75 after witnessing alow of 5,201.85 in early trade.

Out of the 13 BSE sectoral indices, the power (1.64 percent), realty (1.55 per cent), oil and gas (1.08 per cent), consumer goods(0.68 per cent) and PSU (0.58 per cent) barometers ended the session withgains.

In contrast, the indices for the IT (-0.73 per cent),consumer durables (-0.58 per cent), auto (-0.39 per cent), metal (-0.35 percent), FMCG (-0.19 per cent), bankex (-0.05 per cent) and teck (-0.01 per cent)sectors posted losses. The BSE Healthcare index ended flat.

The Sensex pack was given support by the most-weighted firmon the BSE, Reliance Industries, which spurted by 1.51 per cent to 884.60during the session.

However, losses registered by software exporting companieson worries that escalating debt problems in Europe, their second-biggestmarket, might prompt clients to cut costs, offset the market leader's gains.

Auto and consumer durable stocks also declined on concernsover eroding corporate earnings in the wake of a series of interest rate hikesthat have been blamed for a slowdown in economic growth and consumer spending.

Among the major gainers were BHEL (up 4.18 per cent), DLF(3.92 per cent), Tata Power (3.23 per cent), Bharti Airtel (2.15 per cent),Jaiprakash Associates (2.09 per cent), SBI (1.34 per cent) and NTPC (1.11 per cent).

In contrast, Hindustan Unilever (-2.08 per cent), TataMotors (-1.74 per cent), Sterlite Industries (-1.70 per cent), Tata Steel(-1.23 per cent), ICICI Bank (-0.98 per cent), Wipro (-0.95 per cent) andInfosys (-0.94 per cent) registered losses, weighing down the Sensex.

Market analysts said the investor confidence remains jitteryon increased outflows of foreign funds after Greece's shock move to call areferendum on its latest bailout plan prompted global investors to pullout fromrisky assets.