Sensex closes 76 pts up amid volatility; banks, infra lead

The BSE Sensex and NSE Nifty closed marginally higher amid a rangebound trade on Thursday. Consolidation mode for the fourth consecutive session indicated that investors are keenly waiting for the decision by European Central Bank after European Summit and disappointing manufacturing data. Locally first quarter results of FY13 and inflation data (ahead of RBI’s first quarter review of monetary policy) will also be closely watched by investors.

The BSE benchmark rose 75.86 points to close at 17,538.67 and the NSE benchmark went up 24.75 points to 5,327.30 ever after the sharp fall in rupee.

The statement from Mauritius Foreign Ministry saying India has assured Mauritius economic interests won’t be harmed also helped market extend gains in last couple of trade. Mauritius Foreign Ministry said, “We have made offers to India w.r.t to tax treaty revision and the meeting of joint working group will take place on August 27-28.

The Indian rupee was quite volatile today that depreciated by 57 paise or 1.07% to 55.05 against the US dollar ahead of ECB meeting.

The European Central Bank is widely expected to cut borrowing costs to a record low on Thursday to support a deteriorating euro zone economy and complement measures agreed by government leaders last week to tackle the bloc’s debt crisis. France CAC was flat while Britain’s FTSE and Germany’s DAX were marginally higher.

Economic surveys released on Wednesday suggested even euro zone powerhouse Germany is entering a modest downturn and investors want the ECB to take action. The consensus forecast is for a 1/4-percentage point cut in its main interest rate.

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