Sensex extends gains, up 26 points in choppy trade

Mumbai: The BSE Sensex extended gains for the second straight day in a choppy trade -- its first weekly gain in four -- as it edged up over 26 points on increased buying by investors and retailers, tracking a firm overseas trend.

Brokers said sentiment improved after investors bet on the US Fed to raise rates in December but proceed cautiously with any further tightening thereafter.

The 7th Pay panel report, which was submitted yesterday after market hours, buoyed investors, which recommended 23.55 percent hike in pay and allowances for government employees.

The 30-share Sensex was in the grip of profit booking initially, but recovered on the back of across-the-board buying in blue-chips and closed higher by 26.57 points, or 0.10 percent, at 25,868.49. The gauge had gained 359.40 points yesterday.

The broader Nifty ended at 7,856.55, up 13.80 points, or 0.18 percent, after trading between 7,817.80 and 7,906.95 intra-day.

For the week, the Sensex added 257.96 points, or 1 percent, and the NSE Nifty 94.30 points, or 1.21 percent -- their best weekly performance since October 9.

In 30-Sensex kitty, GAIL emerged as the top gainer, up 10.07 percent.

Wipro, Dr Reddy's, Cipla and Vedanta too advanced.

Sectorally, oil and gas hogged the limelight by rising 2.05 percent, followed by capital goods, IT and technology.

The auto index jumped 0.60 percent as stocks like M&M, Maruti Suzuki and Bajaj Auto climbed up to 1.92 percent following the Pay panel recommendations, which are expected to raise the disposable income for consumers.

The broader markets too ticked up, helped by retail investors. The BSE mid-cap and small-cap closed higher by up to 0.86 percent.

Globally, Asian stocks ruled firm and even Europe had a better opening.

In Asia, Hong Kong's Hang Seng ended 1.13 percent up while Shanghai Composite closed 0.37 percent higher and Japan's Nikkei 0.10 percent.

Meanwhile, foreign investors sold shares worth Rs 343.18 crore yesterday, as per provisional data.