Sensex closes up by 64 pts; Airtel leads

The benchmark Sensex closed up by over 60 points on Thursday erasing early losses.

The Bombay Stock Exchange benchmark Sensex closed up by over 60 points on Thursday erasing early losses on selective buying in telecom shares after the RBI late last night said telcos can use money raised abroad to take part in the 3G spectrum auction.

The 30-share Sensex,which fell 92 points in early trading,bounced back to close with a gain of 64.09 points at 17,189.31.

Marketmen said a higher opening in European stock markets helped the Sensex to rebound despite food inflation rising over 19 per cent for the week ended November 28.

Mobile majors Bharti Airtel rose 3.43 per cent and Reliance Communication 2.78 per cent.

National Stock Exchange index Nifty rose by 22.65 points to close at 5,134.65

Marketmen said major construction companies also attracted buying on extending after the central bank extended the period to December 31 2010 for real estate sector to raise overseas funds for developing integrated townships.

In the 30-BSE Sensex kitty shares,16 closed with gains while 14 ended with losses. Shares in the capital goods,bank,power,tech and metal gained the most on fresh buying.

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The capital goods sector,which consist heavy engineering stocks such as Larsen and Toubro and BHEL,gained the most by 1.63 per cent to 13,790.01. Larsen rose by Rs 32.30 to Rs 1,686.55 and BHEL by Rs 61.95 to Rs 2,292.40.

The banking index was second biggest gainer,rising 0.75 per cent to 10,231.40 as shares of ICICI Bank jumped up by Rs 20.95 to Rs 876.25 and Axis Bank by Rs 5.30 to Rs 1,021.60.

Shares of Satyam Computer Services rose by Rs 5.40 to Rs 108.05 after it agreed to settle a dispute with the UK8217;s Upaid Systems. Tech Mahindra,the owner of Satyam,climbed Rs 21.85 to Rs 1,017.

The power index gained 0.71 per cent to 3,034.67,PSU index by 0.55 per cent to 9,338.40,Teck index by 0.47 per cent to 3,177.90,metal index by 0.40 per cent to 16,380.66 and oil and gas index by 0.33 per cent to 10,424.13.

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However,a fall in consumer durable,FMCG,information technologies,auto,healthcare and realty sectors,checked the rally.

As the buying activity spilled over a wide front,smallcap index moved up by 0.89 per cent to 8,027.45 and midcap index by 0.28 per cent to 6,614.04.