Sensex trims initial gains, up 126 points in late morning trade

Mumbai: The BSE Sensex trimmed its initial gains but was trading up 126 points in late morning trade following sustained buying mainly in capital goods, oil and gas, energy and industrial sectors amid positive cues from Asian stocks.

The S&P BSE mid-cap index and the S&P BSE small-cap index were trading up 0.75 per cent and 0.72 per cent, respectively. Both these indices outperformed the Sensex.

The Sensex resumed higher at 31,798.31 and moved in a range of 31,874.13 to 31,797.89 before quoting at 31,814.30 at 1100 hours, up 126.78 points, or 0.40 per cent. The NSE 50-share Nifty was also trading higher by 40.60 points, or 0.41 per cent, to 9,975.40 at 1100 hours.

Major gainers were L&T (2.52 per cent), Tata Motors DVR (1.65 per cent), Hind Unilever (1.57 per cent), Maruti (1.28 per cent), HDFC Bank (1.12 per cent) and Coal India (0.98 per cent).

Foreign portfolio investors (FPIs) sold shares worth Rs 256.42 crore last Friday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth Rs 487.97 crore, as per the provisional data.

Overseas, Asian shares edged higher after North Korean dictator Kim Jong Un decided to hold a party over the weekend rather than launching another missile.

Investors, however, remained cautious over the possible economic impact of hurricane Irma in the US as it chewed its way up the Florida coast, knocking out electricity of 3 million homes and businesses statewide.

Meanwhile, the rupee was still down by 7 paise to 63.85 against the US currency in late morning trade following sustained dollar demand from banks and importers. The rupee resumed sharply lower by 13 paise at 63.91 per dollar as against last closing level of 63.78 at the interbank foreign exchange.

The domestic currency hovered in a range of 63.84 to 63.91 before quoting at 63.85 per dollar at 1130 hrs.