Nifty, Sensex hold early gains; Hindalco underperforms

The 30-share BSE Sensex was trading higher since early trade due to consistent buying interest in technology and banks stocks.  Software services exporter Infosys, housing finance company HDFC and drug producer Cipla topped the buying list with 2.5% gains whereas aluminium Hindalco major was the biggest loser among largecaps with 2.6% losses.

The BSE benchmark moved up 90.5 points to 17,781.56 and the NSE benchmark was up 21 points to 5,387.05.

The market has been getting inflow of foreign money, which resulted into the rally of more than 6% since June 27. However, given the bleak global economic outlook, this rally may not sustain for longer, says Arvind Sanger, managing partner, Geosphere Capital Management. Foreign institutional investors have bought more than Rs 7,500 crore worth of shares consecutively since June 27.

Meanwhile, Sanger is not too bullish on the India because fundaments continue to remain weak due to policy inaction.

Country's largest software services exporter TCS and top commercial vehicle maker Tata Motors were up 1.3% and 1.7%, respectively.

Index heavyweight Reliance Industries rose 0.6%. Top lenders State Bank of India and ICICI Bank were marginally higher while their rival HDFC Bank declined 0.8%.

State-owned power equipment manufacturer BHEL and power generation company NTPC gained nearly 1%.

Engineering and construction major Larsen & Toubro was down 0.4%. Cigarette major ITC lost 0.6%.

In the second line shares, Motherson Sumi, AstraZeneca, Shree Global, S Mobility and GRUH Finance rallied 4-5% whereas Glodyne Tech, Jain Irrigation, Mcleod Russel, United Phosphorous and Cholamandalam went down 2-5%.

Advancing shares outnumbered declining by 749 to 592 on the National Stock Exchange.