Sensex climbs for 2nd day on global cues, short-covering

Markets chalked up gains for the second consecutive session today as the benchmark Sensex spurted over 45 points to close at 26,079.48 in a trade marked by a series of ups and downs, with auto and banking stocks driving the upside amid a positive global trend.
But volumes were thin for yet another session as most foreign investors are away on a vacation in a year-end holiday season and other participants stayed off building their bets in a big way.
Covering-up of short positions by speculators added to the momentum, but profit-booking and caution ahead of the December derivatives expiry made sure the gains were limited.

Marked by such contrasting fortunes, the 30-share Sensex ended higher by 45.35 points, or 0.17 per cent, at 26,079.48. The barometer had gained 195.42 points in the previous session.
The 50-share NSE Nifty closed at 7,928.95, up 3.80 points, or 0.05 per cent. Intra-day, it hovered between 7,942.15 and 7,902.75.
"Key benchmark indices in India remained indecisive in trade today. Gains in European stocks triggered a recovery even as US stocks edged lower yesterday, weighed down by a drop in energy stocks as crude oil prices fell," said Shreyash Devalkar, Fund Manager - Equities, BNP Paribas Mutual Fund.

Sentiment took a turn for the better after Asian and European stocks rose across the board despite losses on the Wall Street overnight.

Some stability in oil prices above the 11-year low and China stocks steadying after the previous session's heavy losses brought some cheer.
Bajaj Auto showed the way, up 1.76 per cent at Rs 2,531.15, followed by Mahindra and Mahindra (1.70 per cent) and Hero MotoCorp (1.18 per cent).
Gains in GAIL, HDFC, Bharti Airtel, Adani Ports, Tata Steel, ICICI Bank and Axis Bank too supported the upside.
Of the 30-Sensex constituents, 19 ended with gains while 11 led by BHEL, Coal India, Hindustan Unilever and ITC fell.
Sector-wise, BSE auto index was in the pink of health as it rose 0.56 per cent, followed by oil and gas (0.24 per cent), bankex (0.24 per cent), healthcare (0.06 per cent) and consumer durables (0.01 per cent).

The broader markets displayed a mixed trend as investors strengthened their bets, lifting the BSE mid-cap index by 0.42 per cent, while small-cap shed 0.13 per cent.
Shares in Japan, Hong Kong, Singapore and Shanghai also ended higher while Europe was trading in the positive zone in early sessions, which buoyed sentiment.
Pramit Brahmbhatt, Veracity Group CEO, said, "On the
sectoral front, it was a mix trade where realty, metal and FMCG stocks were dragging Nifty down while auto and pharma helped it inch up."
The market breadth turned negative as 1,472 stocks ended lower, 1,180 closed higher, while 259 ruled steady out of the total 2,911 stocks.

The total turnover fell to Rs 2,540.61 crore, from Rs 2,609.55 crore yesterday.
"FIIs are in a holiday mood and retail investors are doubtful for going long position ahead of the expiry in the derivative market," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd.