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Sensex erases initial gains amid mixed Asian cues

New Delhi :The benchmark Sensex erased its initial gains as it traded flat with a loss of 7 points amid mixed Asian cues.

Telecom and industrial counters saw some intermittent buying.

Caution and short-covering ahead of the December monthly derivatives expiry on Thursday had a bearing on mood.

Oil and gas, energy and FMCG came under pressure from profit-booking while buying in broader mid-cap and small-cap shares lent some support.

The BSE Sensex resumed higher before trading at 26,072.26 at 1130 hours, down 7.22 points, or 0.03 per cent, from its last close.

The 50-share Nifty was little changed at 7,928.70, down 0.25 points at 1130 hours.

Dr Reddy’s (1.41 per cent) was the leader of the pack, as Tata Steel (up 1.23 per cent), BHEL (0.86 per cent) and HDFC (0.56 per cent) too advanced.

But ICICI Bank lost 0.96 per cent, followed by Reliance, Hero MotoCorp and Bajaj Auto.
Foreign portfolio investors (FPIs) net bought shares worth Rs 8.49 crore yesterday, provisional data showed.

Overseas, Asian markets were trading mixed. US stocks climbed sharply higher yesterday on a rebound in oil prices. The rupee weakened by another 4 paise to 66.44 against the dollar in early trade today at the Interbank Foreign Exchange market on increased month-end demand for the US currency from importers.

Forex dealers said mainly sustained month-end demand from banks and importers weighed. A weakness in the US dollar against some currencies in the global market and a higher opening of the domestic equity market, however, limited the fall.

Yesterday, snapping its eight-day long winning streak against the American currency, the rupee had dropped by 21 paise to 66.40.

Meanwhile, the benchmark BSE Sensex was trading higher by 48.88 points, or 0.18 per cent, at 26,128.36 in early deals.