Sensex ends above 16K, up 32 pts

After surging 150 points, the BSE Sensex lost the momentum but closed above the key 16,000-level with a 32-point gain on renewed concerns over falling rupee and weakness in Eurozone economic activity.

After opening higher, the Sensex touched the day's high of 16,138.29 taking cues from firm Asian markets and HSBC Purchasing Managers' Index (PMI) showing a marked rise in Indian service sector activity.

However, the markets started losing gains after the rupee, which touched a one-week high on Monday, started moving down to towards 56-level.

Eurozone PMI Composite Output Index signalling the steepest rate of decline in manufacturing and services output in Eurozone since June 2009 also dampened the sentiments.

"Markets opened in green taking cues from firm Asian markets, edged higher later in the day on good PMI of India. But was unable to sustain the higher levels and trimmed gain due to weak rupee and weak PMI data of Eurozone countries," said Sharmila Joshi, Head Equity, Fairwealth Securities.

Analysts said investors were kept on their toes ahead of a likely emergency meeting of finance chiefs of the G-7 countries to discuss Eurozone's deepening debt crisis.

The Sensex finally closed at 16,020.64, the first closing above 16,000-level after two days, up 32.24 points.

Out of the 30-Sensex pack, 18 stocks led by L&T, which gained 3 per cent. NTPC, up  1.98 per cent, and SBI, which added 1.66 per cent, were among other major gainers.

Brokers said investors were attracted to stocks in capital goods, banking and power while they sold scrips in realty, FMCG and consumer durable sectors.

On similar lines, the broad-based National Stock Exchange index Nifty rose by 15.15 points, or 0.31 per centto 4,863.30, after touched the day's high of 4,898.95.