Sensex builds on gains, up 72 points in early trade

Mumbai: The benchmark BSE Sensex gained over 72 points in early trade today, extending yesterday’s rally on increased buying by domestic institutional investors encouraged by macro data and better earnings by some blue chips like TCS and Infosys. Besides, a mixed trend in Asian regions influenced sentiment. In a major breakthrough, the Centre and states yesterday reached a consensus on sharing powers for control over tax payers under GST but the new indirect tax regime will now be rolled out from July 1, instead of the previously planned April 1.

The wholesale inflation data, which too was released yesterday, broke the 3-month declining trend and rose to 3.39 per cent last month, mainly due to rise in prices of manufactured items, even as food articles turned cheaper. The 30-share index advanced 72.30 points, or 0.26 per cent, to 27,360.47 with sectoral indices led by IT, Teck, FMCG, PSU and Capital goods stocks trading higher, rising up to 0.57 per cent.

The gauge had gained 50.11 points in the previous session. The NSE index Nifty too climbed 18.50 points, or 0.22 per cent, to 8,431.30. Brokers said persistent buying by domestic institutional investors and a mixed trend at other Asian bourses, buoyed trading sentiment here. Among other Asian markets, Hong Kong’s Hang Seng was up 0.43 per cent, while Japan’s Nikkei fell 0.60 per cent and Shanghai Composite Index shed 0.34 per cent in early trade today.