Sensex trims initial losses, eases 36 points in late morning

Market benchmark BSE Sensex trimmed its initial losses, but was still quoted lower by 36 points to 25,736.22 at 1100hrs on mild selling mainly in refinery, energy and consumer durable sectors. The 30-share index opened lower at 25,548.97 and dropped further to 25,409.24 on concerns that future equity inflows into India would be hit in the aftermath of amendments to the bilateral India-Mauritius tax treaty.

However, it recovered afterwards to 25,742.04 on fresh buying at lower levels on the back of good foreign capital inflows before quoting at 25,736.22 at 1100 hrs, still showing a loss of 36.31 points or 0.14 per cent. The NSE 50-share Nifty also eased by 2.35 points 0.03 per cent to 7,885.45 at 1100hrs.

Major losers were Dr Reddy’s Lab 1.89 per cent, Adani ports 1.31 per cent, Coal India 1.28 per cent, ONGC 1.1 per cent and Bharti Airtel 1.07 per cent. However, Axis Bank firmed up by 1.88 per cent followed by NTPC 0.96 per cent, Asian Paints 0.86 per cent, Maruti 0.81 per cent and Tata Steel 0.61 per cent.

In overseas stock markets, Asian stocks witnessed a mixed trend. US stocks registered broad based gains yesterday as oil prices rallied. Foreign Portfolio Investors and Foreign Institutional Investors bought shares worth net Rs 328.59 crores yesterday as per the provisional data issued by stock exchanges.